Thursday, October 10, 2013

Market Analysis – Thursday, October 10th 2013


The only problem with having a set opinion on the market is that it clouds one’s judgement from what the market is actually doing.  A perfect example of this is that some people think that since the GBPUSD was once trading at 2.07, it will once again return to those levels.  One’s excitement of the potential profit closes one’s eyes to the reality of the situation. Another example are those who predict that the reserve currency of the world, namely the US dollar will one day fall apart. Whenever I hear statement such as that, my only feeling is to expect a massive appreciation in the dollar’s value since the purpose of the market is to prove the majority of people wrong. Remove your personal bias in the markets and watch as your investment portfolio grows in value.

There are several speeches later today that could affect the market’s direction. One is from Bank of Japan’s Governor Kurdoda and the other is from European Central Bank President Mario Draghi. Both of these speakers have the ability to cause major moves in the market. Those looking for additional assistance, CMTrading is here to help those looking to profit in the financial markets.

EUR/USD

Not much has change for the last week in the EURUSD. It’s currently trading at 1.3518 and it’s unclear if the market is in a countertrend rally or if it’s shifting trends. Targets on the upside are 1.3559 and 1.3585. On the downside targets are 1.3510 and 1.3485.

RESISTANCE
R1:  1.3550
R2:  1.3595
R3:  1.3640
SUPPORT
S1:  1.3510
S2:  1.3480
R3:  1.3460


 

USD/CHF

The currency has been rangebound for the past month, trading between .9130 and .8967. It’s current downside targets are .8258 and .8213. Its upside targets are .8293 and .8325.

RESISTANCE
R1:  .8293
R2:  .8325
R3:  .8341
SUPPORT
S1:  .8258
S2: 0.8213
R3:  0.8158

 







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