Daily Market Analysis – What’s going to turn the markets around?

Either it’s time for a technical bounce or perhaps some piece of bullish economic data or none of the above and the markets continue the downward course. Last week’s focus was interest rate announcements and this week the important data will be GDP numbers out of Spain and Belgium plus unemployment numbers from Germany and Italy. Out of the US are Non Farm Payroll plus employment numbers that are due out later in the week. Always of interest is the ECB President Draghi, who will be speaking on Tuesday. 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 market is trading around 1.2899 and what it does from here could determine its short term direction. Breaking below this level opens up the door for 1.2826 and below that is 1.2750. If the market holds its current level, the first target is 1.2950 and then 1.2980. On the economic calendar for the day are German CPI numbers at 8am that if higher than expected could be bullish for the pair. Shortly following this report is the US monthly personal spending that if positive would be bearish for the EURUSD.

Resistance	R1: 1.2945	R2: 1.2995	R3: 1.302
Support	S1: 1.288	S2: 1.285	S3: 1.2825

 

AUDUSD

The AUDUSD has been showing tremendous resilience over the past several weeks, bucking the broad market’s trend. After hitting a low of  1.0149 on October 8, it hasn’t looked back and is currently trading at 1.349 and its next target is 1.0404. On the downside, its first support level is 1.0302 and then 1.0257. Australian housing data is coming out at 20:00 that if lower than expected could adjust the currencies price to the downside.

Resistance	R1: 1.0375	R2: 1.0405	R3: 1.0435
Support	S1: 1.034	S2: 1.03	S3: 1.0235

 

USDCAD

The pair is continuing is upward trajectory, currently trading at .9991. If it turns around from here, the levels to monitor are .9941 and then .9890. If it continues higher, 1.0024 will be the first price objective to watch.

Resistance	R1: 0.9995	R2: 1.002	R3: 1.007
Support	S1: 0.99	S2: 0.994	S3: 0.997

Gold

Shifting our analysis from the currencies, let’s take a look at Gold. Those bullish on the metal, undoubtedly are nervous right now. It’s held above the $1700 level quite nicely and as long as this level continues to hold, Gold’s current correction remains nothing out of the ordinary.

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

 

 Daily Calendar for Monday, October 29

Time	Currency	Event	Actual	Forecast	Previous
8:00 EST	EUR	German CPI(YoY)		2.0%	2.0%
8:30 EST	USD	Personal Spending(MoM)		0.6%	0.5%
20:00 EST	AUD	HIA New Home Sales			-5.3%

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

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