Tuesday, October 23, 2012

Daily Market Analysis – S&P 500 at Support

Global currency and equity markets continue to flirt near support levels. Later today, Bank of England Governor King will be speaking. This could have major implications for the various markets as the sovereign debt problems surrounding Europe seem to be what’s driving market sentiment as of late. 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
The market continues to be 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. BOE Governor King will be speaking later today – this could determine the currency pair’s direction for the near term.

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

 

AUDUSD
In my last posting on the AUDUSD, I had emphasized the importance that the pair remain above 1.0290. Well here we are a week later and its currently trading at 1.0298. Coming out of Australia later today are CPI numbers that if higher than expected could be bullish for currency.
Resistance
R1: 1.034
R2: 1.0365
R3: 1.0405
Support
S1: 1.03
S2: 1.0255
S3: 1.02


 

USDCAD
The pair has broken above major resistance and is trading at .9947, 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. There is the Canadian Interest Rate Decision being announced today. This is going to create major price swings for the USDCAD
Resistance
R1: 0.993
R2: 0.9945
R3: 0.996
Support
S1: 0.992
S2: 0.987
S3: 0.9845
 

S&P 500
Shifting our analysis from the currencies, we can see that the S&P 500 is trading at 1420 and needs to hold above the 1414.25 level or risk falling to its next major support at 1394.50. Its upside has been capped at 1467.
Resistance
R1: 1445.12
R2: 1457.94
R3: 1463.47
Support
S1: 1422.86
S2: 1415.50
S3: 1402.17

 

Daily Calendar for Tuesday, October 23
Time
Currency
Event
Actual
Forecast
Previous
08:30 EST
CAD
Core Retail Sales(MoM)
0.2%
0.4%
09:00 EST
CAD
Interest Rate Decision
1.0%
1.0%
13:00 EST
GBP
BoE Gov King Speaks
20:30 EST
AUD
Trimmed Mean CPI(QoQ)
0.6%
0.5%
Successful Trading!

Jacob Fendrich
Senior Market Analyst

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