Daily Market Analysis – Equity Markets Aiming at Record Highs

03/06/2013

Among the equity markets catching the perma-bears off-guard is the S&P 500. Today has seen the S&P 500 reach 1538.13, a nearly 5 year high and it appears poised to surpass its all-time high. Some are predicting a run all the way to 1650 by the year’s end, though the swings along the way could get interesting. Today’s events could determine how the markets will unfold for the coming weeks. In particular, US ADP Nonfarm Employment numbers are set to be released at 8:15am. Also of interest is the Bank of Japan’s(BOJ) interest rate decision, which should affect the JPY trade.  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. Below are the charts and the day’s economic events to better understand the current short term trends in some of the different markets.

EURUSD 

After reaching 1.3070 today, the pair is currently trading at 1.3033. On the downside, targets to be aware of are 1.3025 followed by 1.3010. If the pair breaks higher, 1.3075 is the first target followed by 1.3100. 

Resistance	R1: 1.3075	R2: 1.3100	R3: 1.3160
Support	S1: 1.3025	S2: 1.3010	S3: 1.2980

 

EURJPY

Its been stuck in 300 pip range since February 26^th, currently trading near its high for the range at 1.2175. At present, targets on the downside are at 121.15 and 120.35.  On the upside its first target is 122.15 followed by 123.20.

Resistance	R1: 122.15	R2: 123.20	R3: 123.75
Support	S1: 121.15	S2: 120.35	S3: 120.20

 

AUDUSD

After reaching 1.0115 to start the week, the pair has rallied to its current 1.0271 level. Targets on the upside are 1.0300 followed by 1.0315. On the downside targets are 1.0275 and 1.0240. At 19:30, Trade Balance numbers are being released from the Australian Bureau of Statistics. If higher than expected this should have a positive effect on the AUD.

Resistance	R1: 1.0300	R2: 1.0315	R3: 1.0340
Support	S1: 1.0270	S2: 1.0240	S3: 1.0215

 

Gold

Gold appears to have reached its retracement target, hitting $1620 on February 26th. Currently its trading at $1575.21.   If gold heads lower, price levels to watch are $1569.60 and $1560.70.

Resistance	R1: 1591.27	R2: 1607.60	R3: 1623.03
Support	S1: 1569.60	S2: 1560.70	S3: 1552.50

 

Daily Calendar for Wednesday, March 6^th  2013   

Time	Currency	Event	Actual	Forecast	Previous
8:15	USD	ADP Nonfarm Employment		170K	192K
10:00	CAD	Interest Rate Decision		1.00%	1.00%
10:00	CAD	Ivey PMI		58.0	58.9
19:30	AUD	Trade Balance		-0.50B	-0.43B
Tent.	JPY	Interest Rate Decision		0.10%	0.10%

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

        

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