Daily Market Analysis – Gold in Danger of Breaking Down

04/03/2013

For those die-hard Goldbugs, the action in the Gold market over the last 6 months has been a major cause for concern. Contrast this with the moves in the general stock markets and it begins to make sense. Perhaps there is a sense of complacency among investors and concerns over the economy have been laid to rest. In any events, it could be that the rally in the stock market has been fueled by the Government’s QE program –in which case it would be risky to jump into the rally at such a late stage. Given these circumstances, it would be best not to hold on to any position for extended periods of time. Keep an eye on economic events as for clues for when to enter or exit position is my best advice.  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 

The pair has traded in a 100 pip range this week. It’s high was 1.2877 and the high for the week was 1.2771. It’s currently trading at 1.2836. Price levels to watch on the downside are 1.2790 and 1.27555. If the pair breaks higher, 1.2840 is the first target followed by 1.2865. 

Resistance	R1: 1.2840	R2: 1.2865	R3: 1.2890
Support	S1: 1.2755	S2: 1.2730	S3: 1.2690

EURJPY

Since the EURJPY reached a yearly high of 127.70 on February 6^th, the trend has shifted to the downside for the time being. It’s currently trading at 119.59. Later in the day, is an interest rate decision from the Bank of Japan. A higher than expected rate is positive for the JPY, while a lower than expected rate is bearish for the JPY.

Resistance	R1: 120.15	R2: 120.85	R3: 121.85
Support	S1: 119.55	S2: 119.10	S3: 118.65

GBPUSD

The pair has risen from 1.4829 on March 12 to its current level of 1.5131. Targets on the upside are 1.5175 followed by 1.5230. On the downside, targets are 1.5070 and 1.4975.

Resistance	R1: 1.5175	R2: 1.5230	R3: 1.5320
Support	S1: 1.5050	S2: 1.4975	S3: 1.4910

Gold

From its high of $1920 in September 2011, the precious metal has fallen nearly 18% to its current level of $1571.85. Is this a buying opportunity or is there a reason it’s going lower?   If gold heads lower, price levels to watch are $1563.25 and $1555.00.

Resistance	R1: 1576.90	R2: 1583.05	R3: 1589.51
Support	S1: 1563.25	S2: 1555.00	S3: 1547.79

Daily Calendar for Wednesday, April 3rd 2013   

Time	Currency	Event	Actual	Forecast	Previous
8:15	USD	ADP NonFarm Employment Change	158k	200k	237k
10:00	USD	ISM Non-Manufacturing Index		55.8	56
20:30	AUD	Building Approvals(MoM)		2.4%	-2.4%
20:30	AUD	Retail Sales(MoM)		0.3%	0.9%
Tentative	JPY	Interest Rate Decision		0.10%	0.10%

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

        

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