Daily Market Analysis - October 19, 2012

Overnight market action saw some of the gains of the past week in the currencies given back. Asian and European markets are slightly lower today and it remains to be seen if the US markets will follow other global markets. Today’s economic reports are light with only European current account figures and US Home Sales. European leaders are in Brussels continuing to discuss the economic situation of the European Union.  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 rallying from 1.2888 to a high of 1.3140, the pair gave back some of the week’s gain and is currently trading at 1.3069.   It’s next downside target is 1.3015 and below that level the next support level is 1.2985. On the upside, the EURUSD will need to break above 1.3085 to open up the door to reach 1.3130. Data coming of the US are Existing Home Sales at 10:00 EST. If this number is positive, it could exacerbate the EURUSD’s current correction downwards.

Resistance	R1: 1.3075	R2: 1.3135	R3: 1.317
Support	S1: 1.3055	S2: 1.3015	S3: 1.2985

 

GBPUSD

The pair’s recent uptrend came to an abrupt end after reaching a high for the week of 1.6178 and subsequently erasing nearly all of the week’s gains, falling all the way to 1.6047.  Major support lies first at 1.6020 followed by 1.5975. It these support levels don’t hold, then it could get interesting.  If the pair is to regain upside momentum, it will need to get above 1.6065 and more importantly it will need to rise above 1.6115.

Resistance	R1: 1.6065	R2: 1.6115	R3: 1.6175
Support	S1: 1.602	S2: 1.5975	S3: 1.5955

  

USDCAD
The pair has been trading sideways since the end of September between .9726 and .9885. Today’s trading saw a massive move up from yesterday’s low of .9763 to its current high of .9872. Getting above .9885 will set the stage for a run to .9920 and on the downside, support comes in at .9845 and .9820. Canadian CPI numbers are being released at 8:30 EST.  

Resistance	R1: 0.987	R2: 0.9885	R3: 0.992
Support	S1: 0.9845	S2: 0.982	S3: 0.9765

Gold
Shifting our analysis from the currencies, we can see that Gold is trading at $1732.30, very close to major support at $1722.  If it breaks this level it’s next level of support comes in at $1707.  If Gold is to reverse the short term trend, it will first need to get above $1744.10.

Resistance	R1: 1744.10	R2: 1759.63	R3: 1764.59
Support	S1: 1731.50	S2: 1722.30	S3: 1707.12

 

Daily Calendar for Thursday, October 19

Time	Currency	Event	Actual	Forecast	Previous
4:00 EST	EUR	Current Account	8.8B	10.5B	8.1B
8:30 EST	CAD	CPI(YoY)		1.0%	1.2%
8:30 EST	CAD	CPI(MoM)		0.3%	0.2%
8:30 EST	CAD	Core CPI(MoM)		0.4%	0.3%
10:00EST	USD	Existing Home Sales		4.75M	4.82M

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

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