Monday, November 12, 2012

Daily Market Analysis – Quiet Start to the Trading Week

With the US markets closed because of Veterans Day, the real action for the week won’t start until Tuesday. This may be a dramatic week for the markets, as most are sitting at critical support levels.  German ZEW Economic Sentiment data will be the big event for Tuesday. On Wednesday, the Bank of England Inflation Report, the US FOMC Minutes plus US retail sales will be closely watched. Let’s watch to see how the markets responds to the previously mentioned events and for the second half of the week we will hopefully have a better picture of where the markets are headed.  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 at 1.2708, the currency is sitting at a very crucial level. Its next major level of support comes in at 1.2624. On the upside, the pair will need to get above 1.2735 before its next resistance at 1.2785. 

R1: 1.2735
R2: 1.2785
R3: 1.2825
S1: 1.262
S2: 1.267                 
S3: 1.2685


The currency is currently trading at 1.0435. Its first target on the upside is 1.0440 followed by 1.0480.  On the downside, its first support is at 1.0395 followed by 1.0380. At 19:30, the National Australia Bank(NAB) business confidence index rates are being reported. Any number above zero is considered bullish for the pair.
R1: 1.044
R2: 1.0480
R3: 1.0518
S1: 1.0395
S2: 1.0380
S3: 1.0355


The GBPUSD broke through critical support and is currently trading at 1.5903 after having reached 1.5879.  Its next level of support is at 1.5850 followed by 1.5835. On the upside, the first resistance level is 1.5920 followed by 1.5960.  At 19:00 the Royal Institution of Chartered Surveyors(RICS) House Price Balanceis being reported. This report is the leading indicator of house price inflation and if lower than expected could have bearish implications for the pair.

R1: 1.5920
R2: 1.5960
R3: 1.6020
S1: 1.5885
S2: 1.585
S3: 1.5835


Gold is starting the week on a bullish note. Its currently trading at $1737 and for the up move to continue, getting above $1743.75 could lead the way to $1754.5. On the downside, its first level of support is at $1726.80 followed by $1712.39. 

R1: 1743.75
R2: 1754.50
R3: 1764.59
S1: 1726.80
S2: 1712.39
S3: 1693.13

Daily Calendar for Monday, November 12th  
19:00 EST
RICS House Price Balance

04:30 EST
NAB Business Confidence


Successful Trading!

Jacob Fendrich
Senior Market Analyst

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