Wednesday, October 31, 2012

Daily Market Analysis – Markets Continue the Green Streak


10/31/2012



German retail sales came out worse than expected from a yearly timeframe, but on a month to month basis expectations were beat.  Perhaps market participants are interpreting this data to mean that the economy is starting to turn the corner.  Unemployment numbers and CPI data will be coming out of the Eurozone later today. US data to be released today is the Employment Cost Index and the Chicago PMI. For those interested in a more in depth analysis, we at CM trading are here to assist those who are interested in profiting from the financial markets.

EURUSD 

Currently trading at 1.3004, the pair looks to be on the upswing. Its next target on the upside is 1.3020 and if it gets above that 1.3070 becomes the target. On the downside, it’s 1.2956 and then then 1.2918. 

Resistance
R1: 1.2960
R2: 1.2990
R3: 1.3025
Support
S1: 1.2915
S2: 1.2885              
S3: 1.2850




AUDUSD

The pair is trading at 1.0398 and is bumping its head against overhead resistance at 1.0415. If it breaks above this level, 1.0475 becomes a possibility. In the other direction, 1.0360 is the first support and then more significant support below that is 1.0325. Later today, the Australian Industry Group(AIG) will be reporting manufacturing index rates that if better than expected will be bullish for the currency.

Resistance
R1: 1.039
R2: 1.041
R3: 1.0425
Support
S1: 1.036
S2: 1.0325
S3: 1.0295


USDCAD

Fx traders bearish on the USDCAD are finally seeing what they want. The Pair is sitting on support at .9970 and its next target is .9930. If the market is going to reverse its short term direction, the first upside target is 1.000 followed by 1.002. Canadian monthly GDP numbers are being released at 08:30 that if positive could be bullish for the pair. As well, Bank of Canada’s Governor Carney will be speaking at 14:00.

Resistance
R1: 1.000
R2: 1.002
R3: 1.0035
Support
S1: 0.9950
S2: 0.9940
S3: 0.9900


 

Gold

Gold seems to be breaking out of the base its been forming since reaching $1698.51 early last week. Its trading at $1717.66 and remains in a long term uptrend.  In the near term, its most recent low remains strong support. Getting above $1722.30, opens up the door for $1731.50.

Resistance
R1: 1722.30
R2: 1731.50
R3: 1739.40
Support
S1: 1698.75
S2: 1690.14
S3: 1681.80

 

Daily Calendar for Wednesday, October 31st
Time
Currency
Event
Actual
Forecast
Previous
03:00 EST
EUR
German Retail Sales(MoM)
1.5%
.3%
.1%
03:00 EST
EUR
German Retail Sales(YoY)
-3.1%
-1.2%
-1.1%        
06:00 EST
EUR
Unemployment Rate
11.6%
11.5%
11.5%
06:00 EST
EUR
CPI(YoY)
2.5%
2.5%
2.6%
08:30 EST
CAD
GDP(MoM)

0.2%
0.2%
08:30 EST
USD
Employment Cost Index

0.5%
0.5%
09:45 EST
USD
Chicago PMI

51.0
49.7
14:00 EST
CAD
BoC Gov Carney Speaks



18:30 EST
AUD
AIG Manufacturing Index


44.1

Successful Trading!

Jacob Fendrich
Senior Market Analyst

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