Daily Market Analysis – Markets Continue the Green Streak

10/31/2012

German retail sales came out worse than expected from a yearly timeframe, but on a month to month basis expectations were beat.  Perhaps market participants are interpreting this data to mean that the economy is starting to turn the corner.  Unemployment numbers and CPI data will be coming out of the Eurozone later today. US data to be released today is the Employment Cost Index and the Chicago PMI. 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 

Currently trading at 1.3004, the pair looks to be on the upswing. Its next target on the upside is 1.3020 and if it gets above that 1.3070 becomes the target. On the downside, it’s 1.2956 and then then 1.2918. 

Resistance	R1: 1.2960	R2: 1.2990	R3: 1.3025
Support	S1: 1.2915	S2: 1.2885	S3: 1.2850

AUDUSD

The pair is trading at 1.0398 and is bumping its head against overhead resistance at 1.0415. If it breaks above this level, 1.0475 becomes a possibility. In the other direction, 1.0360 is the first support and then more significant support below that is 1.0325. Later today, the Australian Industry Group(AIG) will be reporting manufacturing index rates that if better than expected will be bullish for the currency.

Resistance	R1: 1.039	R2: 1.041	R3: 1.0425
Support	S1: 1.036	S2: 1.0325	S3: 1.0295

USDCAD

Fx traders bearish on the USDCAD are finally seeing what they want. The Pair is sitting on support at .9970 and its next target is .9930. If the market is going to reverse its short term direction, the first upside target is 1.000 followed by 1.002. Canadian monthly GDP numbers are being released at 08:30 that if positive could be bullish for the pair. As well, Bank of Canada’s Governor Carney will be speaking at 14:00.

Resistance	R1: 1.000	R2: 1.002	R3: 1.0035
Support	S1: 0.9950	S2: 0.9940	S3: 0.9900

 

Gold

Gold seems to be breaking out of the base its been forming since reaching $1698.51 early last week. Its trading at $1717.66 and remains in a long term uptrend.  In the near term, its most recent low remains strong support. Getting above $1722.30, opens up the door for $1731.50.

Resistance	R1: 1722.30	R2: 1731.50	R3: 1739.40
Support	S1: 1698.75	S2: 1690.14	S3: 1681.80

 

Daily Calendar for Wednesday, October 31^st

Time	Currency	Event	Actual	Forecast	Previous
03:00 EST	EUR	German Retail Sales(MoM)	1.5%	.3%	.1%
03:00 EST	EUR	German Retail Sales(YoY)	-3.1%	-1.2%	-1.1%
06:00 EST	EUR	Unemployment Rate	11.6%	11.5%	11.5%
06:00 EST	EUR	CPI(YoY)	2.5%	2.5%	2.6%
08:30 EST	CAD	GDP(MoM)		0.2%	0.2%
08:30 EST	USD	Employment Cost Index		0.5%	0.5%
09:45 EST	USD	Chicago PMI		51.0	49.7
14:00 EST	CAD	BoC Gov Carney Speaks
18:30 EST	AUD	AIG Manufacturing Index			44.1

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

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