Daily Market Analysis

Many of the foreign currency and equity markets are close to reclaiming their recent highs after data released yesterday caused a shift in investor sentiment.  Its anyone’s guess, but perhaps traders and investors interpreted yesterday’s significantly better than expected German ZEW Economic Sentiment numbers as an indication of the lengths that European Central banks are willing to take to rescue debt laden EU countries. It’s a much lighter agenda of market moving economic reports than yesterday. Already released today were the UK’s MPC Meeting Minutes and the Claimant Count Change. US Housing data coming out later today could provide some good trades. 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

After hitting a low of 1.2888 to start the trading week, each passing day this week sees the currency pair hitting new highs. Today’s high thus far has been 1.3123, a mere 50 pips from setting a new 5 month high that was established at 1.3170 nearly a month ago. Data coming of the US are housing starts and building permits at 8:30 EST. If these numbers are negative, it could be bullish for the EURUSD.

Resistance	R1: 1.312	R2: 1.317	R3: 1.327
Support	S1: 1.299	S2:1.3015	S3: 1.3085

 

GBPUSD
 

After the release of the UK’s MPC meeting minutes and the better than expected Claimant Count Change, the GBPUSD is reaching new highs for the week at 1.6163. The next significant level that fx traders have their sights on is 1.6215. Those traders who are bullish will want the pair to hold above 1.6110 for the pair continue its trend upwards.

Resistance	R1: 1.6170	R2: 1.614	R3: 1.6215
Support	S1: 1.6020	S2: 1.6070	S3: 1.6115

  

 

 

AUDUSD

After hitting a low to start the trading week of 1.0240, the currency pair hasn’t looked back. It’s currently trading at 1.0326, it’s high for the week. FX traders will want the pair to remain above 1.0290 for the pair to remain in a healthy uptrend. Important to this uptrend is Australia’s NAB Quarterly Business Confidence Index data that is being released at 20:30 EST. If the number is higher than expected this could be supportive of the pair.

Resistance	R1: 1.032	R2: 1.035	R3: 1.039
Support	S1: 1.02	S2: 1.0255	S3: 1.029

Gold
 

Let’s shift our analysis from the currencies to the Precious Metals market. Gold reached $1753.50 today retracing close to 40% of it’s drop from $1796 to $1728. The next level up is $1759.63 and holding above $1743.70 is important for a sign that a short term low has been established.

 

Resistance	R1: 1759.63	R2: 1764.59	R3: 1777.40
Support	S1: 1743.70	S2: 1731.5	S3: 1722.30

Daily Calendar for Tuesday, October 17

Time	Currency	Event	Actual	Forecast	Previous
4:30 EST	GBP	MPC Meeting Minutes
4:30 EST	GBP	Claimant Count Change	-4.0k	-1.0k	-14.2k
8:30 EST	USD	Housing Starts	0.872M	0.770M	0.750M
8:30 EST	USD	Building Permits	0.894M	0.810M	.801M
20:30EST	AUD	NAB Quarterly Report			-2.0
22:00EST	CNY	Chinese GDP(YoY)		7.4%	7.6%

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

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