Daily Market Analysis – Pullback before Santa Claus Rally?

If history is any guide, markets could be ready for another push higher. It is possible that global markets may start from a lower rallying point, as most are somewhat overbought and in need of a breather.  At 8:30am, numbers on the US Current Account index will be released. In short this is a monthly report that measures difference between imported and exported goods, services and interest payments. If this reading is higher than expected, this would be bullish for the USD. Later in the day at 13:15, US FOMC member Richard Fisher will be speaking. His comments can have an impact on the short direction of the USD. 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

So far today, the pair has reached 1.3177. This is a 7 month high for the pair.   On the downside, targets to be aware of are 1.3050 followed by 1.3000. If the pair breaks higher, 1.3220 is the first target followed by 1.3270.

Resistance	R1: 1.32	R2: 1.3250	R3: 1.3275
Support	S1: 1.3145	S2: 1.312	S3: 1.3065

NZDUSD

Its currently trading at .84328 with targets on the downside at .8425 and .8418.  On the upside its first target is .8438 followed by .8458. At 16:45, we will get numbers on the monthly Current Account index. If these numbers are lower than expected, this would be bearish for the NZD.

Resistance	R1: .8438	R2: .8458	R3: .8498
Support	S1: .8425	S2: .8418	S3: .8375

GBPUSD

So far today the GBPUSD has reached 1.6223. Current targets on the upside are 1.6215 followed by 1.6250. On the downside targets are 1.6195 and 1.6150.

Resistance	R1: 1.6215	R2: 1.625	R3: 1.6270
Support	S1: 1.6195	S2: 1.6150	S3: 1.6110

Gold

Gold is trading at $1700.93, up from its low of $1686.45. Targets on the upside are $1704.48 and $1718.10. If gold heads lower, price levels to watch are $1689.16 and $1675.22.

Resistance	R1: 1704.48	R2: 1718.10	R3: 1721.30
Support	S1: 1689.16	S2: 1675.22	S3: 1663.00

Daily Calendar for Tuesday, December 18^th   

Time	Currency	Event	Actual	Forecast	Previous
08:30	USD	Current Account		-103.4B	-117.4B
13:15	USD	FOMC Member Fisher Speaks
16:45	NZD	Current Account		-4.40B	-1.80B

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

      

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 involved. More information can be found from our "Risk Disclosure" statement. . The content offered in this email is for information purposes only and should not be interpreted as a solicitation to offer purchase or sale of any financial instrument. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change.