Daily Market Analysis – Is this a short term bounce?

Today’s schedule is once again heavy with market moving announcements. Pending the release of that data, we shall see if today’s market strength is nothing more than a short term recovery bounce after getting trashed over the last several trading days or if the markets will return to the highs of last week. So far released today were better than expected GDP numbers out of the UK. Later today from the US we will see employment numbers, manufacturing numbers and housing data. 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

The pair is currently trading at 1.3005, facing heavy overhead resistance at 1.3020. If it gets above this level the next upside target is at 1.3075. If the EURUSD falls from its present level, the first downside target is 1.2950 followed by 1.2895.  There are several key events to watch that could impact the pairs direction. First, Initial Jobless Claims are being released at 8:30am that if worse than expected might be bearish for the currency. Also being released at 8:30am are Durable Goods numbers which would be bullish for the EURUSD if the numbers are better than expected. At 10am are Pending Home Sales that if higher than expected would be bearish for the EURUSD.

 

Resistance	R1: 1.3015	R2: 1.303	R3: 1.3075
Support	S1: 1.2950	S2: 1.292	S3: 1.2895

GBPUSD

It remains to be seen if today’s pop higher is an opportunity to short the pair or if the currency is going to continue higher. 1.6133 has been the high so far for today’s trading day with the next target on the upside at 1.6170. If the market heads lower, the first target is 1.6070 followed by 1.6015.

Resistance	R1: 1.614	R2: 1.6175	R3: 1.6220
Support	S1: 1.6070	S2: 1.6015	S3: 1.5955

  

 

NZDUSD

The pair was able to break above the .8170 resistance level following yesterday’s favorable RBNZ rate statement and interest rate decision. It’s currently trading at .8236 and is facing its next resistance level at .8252, which if it breaks above could set the stage for the .8343 level. Targets on the downside are first at .8200, followed by .8140. Possibly influencing the pair’s direction are NZD Trade Balance numbers being reported at 17:45 that if better than expected would be bullish for the pair.

Resistance	R1: 0.8254	R2: 0.8343	R3: .8465
Support	S1: .8216	S2: .8138	S3: .8034

 

Gold

Shifting our analysis from the currencies, we can see that Gold’s correction to the downside is continuing. After bouncing off support around $1698.90, its trading at $1715.30 and getting above $1729.90 will set the stage for a rise to $1743. On the downside, it will need to hold above $1698.75. Its next downside target is $1688.33, followed by $1676.29.

Resistance	R1: 1722.30	R2: 1731.50	R3: 1739.44
Support	S1: 1698.75	S2: 1690.14	S3: 1681.80

 

Daily Calendar for Thursday, October 25

Time	Currency	Event	Actual	Forecast	Previous
4:30 EST	GBP	GDP(YoY)	0.0%	-0.5%	-0.5%
4:30 EST	GBP	GDP(QoQ)	1.0%	0.6%	-0.4%
8:30 EST	USD	Initial Jobless Claims		370K	388K
8:30 EST	USD	Core Durable Goods Order(MoM)		7.1%	-13.2%
10:00EST	USD	Pending Home Sales(MoM)		2.1%	-2.6%
17:45EST	NZD	Trade Balance		-825M	-789M

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

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