Friday, March 8, 2013

Daily Market Analysis – Stage is Set for Big Trades for the Week Ahead



03/08/2013
Following better than expected US economic data, the dollar index saw a massive 1% move higher. It remains to be seen if this was a capitulative move or if it’s about to move much higher. Next week traders and investors are expecting a reasonable amount of volatility with the breadth of various economic reports set to be released.  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 1.3134 today, the pair has dropped like a rock currently trading at 1.2965. If it breaks below its current level it could go much lower. Price levels to watch on the downside are 1.2960 and 1.2925. If the pair breaks higher, 1.30  is the first target followed by 1.3034. 

Resistance
R1: 1.3000   
R2: 1.3034
R3: 1.3070
Support
S1: 1.2960
S2: 1.2925
S3: 1.2885




EURJPY

Today saw an explosive move in the EURJPY. From yesterday’s low of 1.2176, it rallied nearly 400 pips to 1.2596. It now is at the 1.2423 level with its first downside target at 124.15 followed by 123.80. On the upside, the first target is 1.25 followed by 1.2570.

 Resistance
R1: 124.50
R2: 125.00
R3: 125.70
Support
S1: 124.15
S2: 123.80
S3: 123.00


GBPUSD

After reaching 1.5197 to start the week, the pair has fallen to its current 1.4923 level. Targets on the upside are 1.4970 followed by 1.5013. On the downside, targets are 1.4884 and 1.4850.

Resistance
R1: 1.4970
R2: 1.5013
R3: 1.5043
Support
S1: 1.4884
S2: 1.4850
S3: 1.4748




GOLD

Gold appears to have reached its retracement target, hitting $1620 on February 26th. It’s been trading sideways over the last this past week and is currently at $1576.97.   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 Friday, March 8th 2013
   
Time
Currency
Event
Actual
Forecast
Previous
8:30
USD
Nonfarm Payrolls
236k
160K
119K
8:30
USD
Unemployment Rate
7.7%
7.9%
7.9%
20:30
CNY
Chinese CPI(YoY)

3.0%
2.0%

Successful Trading!

Jacob Fendrich
Senior Market Analyst
        
Risk Warning: Contracts for Difference (CFDs)  and foreign exchange products are leveraged products and may not be suitable for everyone. They are highly speculative and involve a significant risk of loss. Please ensure that you fully understand the risks involved. More information can be found from our "Risk Disclosure" statement. . The content offered in this email is for information purposes only and should not be interpreted as a solicitation to offer purchase or sale of any financial instrument. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change.

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