Daily Market Analysis –US Dollar Strength Weakens Markets

Many market pundits have their theory on how Obama’s victory is affecting the market. Well, I can’t say with any certainty what the correlation may be, so I’m more comfortable with pointing to the USD being in an uptrend as the reason it continues to go up.  And when the reserve currency of the world shows strength, this drives down the price of other asset classes. Aside from the election, other events to be aware of are employment numbers coming out of New Zealand and Australia. 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 

After reaching 1.2875, the currency pair is currently trading at 1.2801. Its next level of support comes in at 1.2790 followed by 1.2765. On the upside, the pair will need to get above 1.2830 before its next resistance at 1.2855. 

Resistance	R1: 1.283	R2: 1.2855	R3: 1.2890
Support	S1: 1.2790	S2: 1.2765	S3: 1.2735

AUDUSD

The currency touched a major resistance line at 1.0477 and sold off to its current price of 1.0453. Getting above 1.0477 will open the possibility of 1.05 followed by 1.0525. If it breaks above this level, 1.0520 becomes a possibility. In the other direction, 1.0445 is the first support level followed by 1.0410. Australian employment data is being reported at 19:30.

Resistance	R1: 1.0477	R2: 1.05	R3: 1.0525
Support	S1: 1.0445	S2: 1.041	S3: 1.0365

 

 

NZDUSD

The NZDUSD is currently trading at .8295.  Its next level on the upside is .8298 followed by .8305. On the downside, the first support level is .8284 followed by .8277.  At 16:45 New Zealand employment data is being reported. 

Resistance	R1: .8298	R2: .8305	R3: .8312
Support	S1: 0.8284	S2: 0.8277	S3: 0.8270

 

Gold

Since setting a low of $1672.50 to begin the week, it has since rocketed to $1731.60. For the up move to continue, getting above $1731.60 could lead the way to $1739.44. On the downside, its first level of support is at $1722.30 followed by $1706.85. 

Resistance	R1: 1695.75	R2: 1707.84	R3: 1716.23
Support	S1: 1722.30	S2: 1706.85	S3: 1693.13

 

Daily Calendar for Wednesday, November 7^th  

Time	Currency	Event	Actual	Forecast	Previous
05:00EST	EUR	Retail Sales(MoM)	-.2%	-0.1%	.2%
06:00 EST	EUR	German Industrial Production(MoM)	-1.8%	-0.5%	-.4%
16:45 EST	NZD	Employment Change(QoQ)		0.3%	-0.1%
16:45 EST	NZD	Unemployment Rate		6.7%	6.8%
19:30 EST	AUD	Employment Change		0.2k	14.5K
19:30 EST	AUD	Unemployment Rate		5.5%	5.4%

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

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