Daily Market Analysis – Stage is Set for Big Trades for the Week Ahead

03/08/2013

Following better than expected US economic data, the dollar index saw a massive 1% move higher. It remains to be seen if this was a capitulative move or if it’s about to move much higher. Next week traders and investors are expecting a reasonable amount of volatility with the breadth of various economic reports set to be released.  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. Below are the charts and the day’s economic events to better understand the current short term trends in some of the different markets.

EURUSD

After reaching 1.3134 today, the pair has dropped like a rock currently trading at 1.2965. If it breaks below its current level it could go much lower. Price levels to watch on the downside are 1.2960 and 1.2925. If the pair breaks higher, 1.30  is the first target followed by 1.3034. 

Resistance	R1: 1.3000	R2: 1.3034	R3: 1.3070
Support	S1: 1.2960	S2: 1.2925	S3: 1.2885

EURJPY

Today saw an explosive move in the EURJPY. From yesterday’s low of 1.2176, it rallied nearly 400 pips to 1.2596. It now is at the 1.2423 level with its first downside target at 124.15 followed by 123.80. On the upside, the first target is 1.25 followed by 1.2570.

Resistance	R1: 124.50	R2: 125.00	R3: 125.70
Support	S1: 124.15	S2: 123.80	S3: 123.00

GBPUSD

After reaching 1.5197 to start the week, the pair has fallen to its current 1.4923 level. Targets on the upside are 1.4970 followed by 1.5013. On the downside, targets are 1.4884 and 1.4850.

Resistance	R1: 1.4970	R2: 1.5013	R3: 1.5043
Support	S1: 1.4884	S2: 1.4850	S3: 1.4748

GOLD

Gold appears to have reached its retracement target, hitting $1620 on February 26th. It’s been trading sideways over the last this past week and is currently at $1576.97.   If gold heads lower, price levels to watch are $1569.60 and $1560.70.

Resistance	R1: 1591.27	R2: 1607.60	R3: 1623.03
Support	S1: 1569.60	S2: 1560.70	S3: 1552.50

 

 

Daily Calendar for Friday, March 8^th 2013
   

Time	Currency	Event	Actual	Forecast	Previous
8:30	USD	Nonfarm Payrolls	236k	160K	119K
8:30	USD	Unemployment Rate	7.7%	7.9%	7.9%
20:30	CNY	Chinese CPI(YoY)		3.0%	2.0%

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

        

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