Monday, October 22, 2012

Daily Market Analysis – October 22, 2012

Investors and currency traders will be eyeing the markets with bated breath as all of the major markets are at a near term turning point - this week is going to be an action packed one.  With interest rate decisions from Canada, New Zealand and Sweden plus the whole array of political speeches from the world’s leading economies, there will be many opportunities for profitable trades this week. 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 market is in a precarious position right now for fx traders on the long side. It will need to hold above 1.3030 if it is to continue its uptrend. Below this level could see it return to 1.2930 in a hurry. The upside seems limited with its high of the last 6 months coming in at 1.3170.

R1: 1.3075
R2: 1.3135
R3: 1.317
S1: 1.3015
S2: 1.295        
S3: 1.2895



As I said in Friday’s post, holding above 1.5975 is crucial and so far so good. It bounced off 1.5990 at the markets open and is currently trading at 1.6045 with light resistance of 1.6065 looming overhead.

R1: 1.6035
R2: 1.6065
R3: 1.612
S1: 1.599
S2: 1.5975
S3: 1.5955



The pair has broken above major resistance and is trading at .9934, its highest level since August. Its next major upside target comes in at .9983 and on the downside the level to watch for is .9870.

R1: 0.9945
R2: 0.9965
R3: 1.00
S1: 0.992
S2: 0.99
S3: 0.984


Shifting our analysis from the currencies, we can see that Gold took a breather from its downward drop after bouncing off $1713.30. Its currently at $1724.90, right around its next level of resistance at $1727.

R1: 1727.10
R2: 1739.44
R3: 1757.84
S1: 1713.10
S2: 1707.12
S3: 1694.14

Daily Calendar for Monday , October 22

11:30 EST
3-Month  Bill Auction
11:30 EST
6-Month  Bill Auction

Successful Trading!

Jacob Fendrich
Senior Market Analyst

Risk Warning: Contracts for Difference (CFDs)  and foreign exchange products are leveraged products and may not be suitable for everyone. They are highly speculative and involve a significant risk of loss. Please ensure that you fully understand the risks involved. More information can be found from our "Risk Disclosure" statement. . The content offered in this email is for information purposes only and should not be interpreted as a solicitation to offer purchase or sale of any financial instrument. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change.

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