The
start of the trading week is off to a positive note after IMF and World bank
meetings over the weekend. Although no definitive plan
was proposed, there is optimism among world leaders that with a jointed effort
a global debt crisis can be avoided. Now let’s take a look at the different markets
and what to expect from currency traders and investors. 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
EURUSD hit a low of 1.2888 within
several hours of the opening of the trading week. It is currently trading at
1.2960 and remains stuck in the trading range of the past week. If the currency
pair is to break out of this trading range, either Retail Sales or the Core
Retail Sales could be that catalyst. If these numbers are lower than expected,
this could cause the EURUSD to rise. These reports are due an hour before the
US market opens at 8:30 EST.
Resistance
|
R1: 1.2970
|
R2: 1.2990
|
R3: 1.3030
|
Support
|
S1: 1.2920
|
S2: 1.2880
|
S3: 1.2830
|
AUDUSD
The AUDUSD sold off at the open,
reaching the technically significant level of 1.0201 and bouncing off that
level nicely to its current price of 1.0233. Australia’s Monetary Policy
Meeting Minutes are being released at 20:30 EST. This report has the potential
to ignite significant moves in the pair.
Resistance
|
R1: 1.0285
|
R2: 1.0320
|
R3: 1.0375
|
Support
|
S1: 1.0215
|
S2: 1.0180
|
S3: 1.0150
|
CADUSD
The pair opened the trading week at
.9810 and has since dropped down to .9782.
Some big moves could be expected as the BoC Governor Mark Carney is
expected to speak at 15:20 EST. He is recognized as having more influence over
the Canadian dollar’s value than any other person. His words have the potential
to create short term trend changes.
Resistance
|
R1: .9810
|
R2: .9835
|
R3: .9855
|
Support
|
S1: .9795
|
S2: .9765
|
S3: .9745
|
Gold
Let’s shift our analysis from the foreign
currency market to the precious metals market. It is at a significant point
right now that could determine its medium term direction. From Friday until
now, it has fallen from $1773.50 all the way to a low of $1740 at today’s
market open and is currently trading at $1747. This type of correction isn’t
anything out of the ordinary after such a large move up. More specifically it
rallied all the way from $1591 to $1796 over the course of less than 3 months.
Historically, these kinds of moves can sometimes be accompanied by corrections
of 50% of the move up. However it’s important to remember than Gold is viewed
as a safe haven investment and the technical side can sometimes be ignored if investors
have cause for concern.
Resistance
|
R1: 1752.75
|
R2: 1764.59
|
R3: 1777.40
|
Support
|
S1: 1731.50
|
S2: 1722.30
|
S3: 1707.12
|
Daily
Calendar for Thursday, October 11
Time
|
Country/Currency
|
Event
|
Actual
|
Forecast
|
Previous
|
8:30EST
|
USD
|
Retail Sales(MoM)
|
.8%
|
.9%
|
|
8:30EST
|
USD
|
Core Retail Sales(MoM)
|
.6%
|
.8%
|
|
15:20EST
|
CAD
|
BoC Gov Carney Speaks
|
|||
20:30EST
|
AUD
|
Monetary Policy Meeting Minutes
|
Successful
Trading!
Jacob Fendrich
Senior Market Analyst
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
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