Tuesday, November 6, 2012

Daily Market Analysis –Markets Downward Bias Continues

After being range bound for the last two months, most of the markets seem to be breaking out of this trading pattern to the downside. It remains to be seen what will rescue the markets from their downward slide. Today’s big event is the US presidential election. It will be interesting to see how and if that changes market conditions. It’s more likely, however, that tomorrow’s European Central Bank (ECB) press conference will have more of an impact on the market.    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 currency pair is currently trading at 1.2775, slightly above its 1.2750 support level. If the pair gets above 1.28, its next level up is 1.2840.  At 6:00am, data on monthly German Factory Orders will be released.

R1: 1.28
R2: 1.284
R3: 1.2895
S1: 1.2765
S2: 1.275                 
S3: 1.2635



Yesterday’s higher than expected interest rate announcement from the Reserve Bank of Australia proved to be quite bullish for the currency pair. Its currently trading at 1.0427 and its next level up is at 1.0475. If it breaks above this level, 1.0520 becomes a possibility. In the other direction, 1.0415 is the first support level followed by 1.0365. 

R1: 1.0435
R2: 1.0475
R3: 1.0520
S1: 1.033
S2: 1.0365
S3: 1.0415



The USDCAD is currently trading at .9949.  Its next level on the downside is .9940 followed by .9920. On the upside, the first resistance level is .9955 followed by .9975.  At 10:00am the Ivey Purchasing Managers’ Index(PMI) numbers are being reported. This report measures the activity level of purchasing managers in Canada. If this number is higher than expected, this would be bullish for the CAD.  

R1: .9955
R2: .9975
R3: 1.001
S1: 0.994
S2: 0.9920
S3: 0.9900


Gold’s low for the current move down has been $1672.50. Its recovered nicely from that low and is currently trading at $1688.70. For the upmove to continue, its first target is at $1695.75 followed by $1707.84. On the downside its next level of support is at $1670.44 followed by $1655.00. 

R1: 1695.75
R2: 1707.84
R3: 1716.23
S1: 1670.44
S2: 1665.00
S3: 1655.30

Daily Calendar for Tuesday, November 6th
German Factory Orders

10:00 EST
Ivey PMI


Successful Trading!

Jacob Fendrich
Senior Market Analyst

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