Tuesday, October 30, 2012

Daily Market Analysis – European markets are Showing Green Today

European markets are in the positive, shrugging off worse than expected German unemployment numbers. It could be that market participants are choosing to focus on the better than expected Spanish quarterly GDP data. Whether this is the start of a new trend remains to be seen. Due to the hurricane, US markets will be closed. 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.


The pair continues to show resilience as it refuses to fall below the 1.2880 level. Its currently trading right below resistance at 1.2942. Its next target on the upside is 1.3010. On the downside, the most important level to watch for seems to be 1.2880. If it drops below this, that will be give some hope to those bearish on the currency. 

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


From the end of September its high was 1.6309 and it reached a low of 1.5913 just last week. It’s currently trading at 1.6059 and those who are bullish are watching to see if the pair will break out of its current downward channel to once again reclaim its September highs. Otherwise its business as usual with it’s next level of support coming in at 1.6005.

R1: 1.6085
R2: 1.614
R3: 1.618
S1: 1.604
S2: 1.6005
S3: 1.595

Fx traders bearish on the USDCAD must be pretty frustrated with the pair’s recent strength. So far this month the pair has rallied all the way from .9734 in early October to today’s high of 1.0019. If the market is going to reverse direction its first support level comes in at .9995, followed by .9970. Bank of Canada’s Governor Carney, who has more influence over the CAD’s value than any other person, will be speaking at 15:30.

R1: 1.002
R2: 1.0035
R3: 1.007
S1: 0.9995
S2: 0.997
S3: 0.993



Gold is currently trading at $1712.78.  It remains to be seen whether the most recent low at $1698.51. If this in fact was the low, then on the upside we should watch for $1722.30 and then $1731.50. On the downside, the first target is $1698.75, followed by $1690.14.

R1: 1712.20
R2: 1722.30
R3: 1731.50
S1: 1698.75
S2: 1690.14
S3: 1681.80


Daily Calendar for Tuesday, October 30
04:00 EST
Spanish GDP(QoQ)
04:55 EST
German Unemployment Change
15:30 EST
BoC Gov Carney Speaks

20:30 EST
Building Approvals(MoM)


Successful Trading!

Jacob Fendrich
Senior Market Analyst

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