Monday, October 15, 2012

Daily Market Analysis - October 15, 2012


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

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