Monday, November 5, 2012

Daily Market Analysis –Markets Wait for Further Clues

Following the release of US Nonfarm Data on Friday, markets sold off and appear to be waiting for the next batch of economic data before deciding where to go next.  Of special note this week are interest rate decisions coming from the European Central Bank(ECB), the Bank of England(BoE) and the Reserve Bank of Australia(RBA).  Aside from economic data, there will be the US presidential election on Tuesday, November 6th. Historically, market volatility is twice as high during national elections.   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.


Currently sitting on its 1.2792 support level, the EURUSD’s next level down is at 1.2750. Below that, its next target is at 1.2633.  On the upside, its first resistance level is 1.2850 followed by 1.2910. 

R1: 1.2945
R2: 1.291
R3: 1.2850
S1: 1.2750
S2: 1.279            
S3: 1.2815



The pair is currently trading near the sessions lows at 1.0345 and its next level down is at 1.0330. If it breaks above this level, 1.0305 becomes a possibility. In the other direction, 1.04 is the first resistance followed by 1.0420. At 22:30, the Reserve Bank of Australia will be announcing its interest rate decision. If this rate is higher than expected, this could cause the currency to rise.

R1: 1.038
R2: 1.040
R3: 1.042
S1: 1.035
S2: 1.0325
S3: 1.0305


The USDCAD is currently trading at .9960.  Its next level target on the upside is .9985 followed by 1.0015. On the downside, the first support level is .99.35 followed by .9920.  At 8:30am Canadian Building Permits data is being reported. If this number is higher than expected, this would be bullish for the CAD.  

R1: .9960
R2: .9985
R3: 1.0015
S1: 0.9935
S2: 0.9920
S3: 0.9900



Gold took a major hit lower on Friday, falling all the way from the day’s high of $1716.65 to a low of $1674.52. Its currently trading at $1678.55 and its next level of support is at $1670.44 followed by $1655.00. On the upside, its first target is at $1695.75 followed by $1707.84.

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


Daily Calendar for Monday, November 5th
08:30 EST
Building Permits(MoM)

22:30 EST
Interest Rate Decision


Successful Trading!

Jacob Fendrich
Senior Market Analyst

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