Daily Market Analysis – October 22, 2012

Investors and currency traders will be eyeing the markets with bated breath as all of the major markets are at a near term turning point - this week is going to be an action packed one.  With interest rate decisions from Canada, New Zealand and Sweden plus the whole array of political speeches from the world’s leading economies, there will be many opportunities for profitable trades this week. 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

The market is in a precarious position right now for fx traders on the long side. It will need to hold above 1.3030 if it is to continue its uptrend. Below this level could see it return to 1.2930 in a hurry. The upside seems limited with its high of the last 6 months coming in at 1.3170.

Resistance	R1: 1.3075	R2: 1.3135	R3: 1.317
Support	S1: 1.3015	S2: 1.295	S3: 1.2895

 

GBPUSD

As I said in Friday’s post, holding above 1.5975 is crucial and so far so good. It bounced off 1.5990 at the markets open and is currently trading at 1.6045 with light resistance of 1.6065 looming overhead.

Resistance	R1: 1.6035	R2: 1.6065	R3: 1.612
Support	S1: 1.599	S2: 1.5975	S3: 1.5955

  

USDCAD

The pair has broken above major resistance and is trading at .9934, its highest level since August. Its next major upside target comes in at .9983 and on the downside the level to watch for is .9870.

Resistance	R1: 0.9945	R2: 0.9965	R3: 1.00
Support	S1: 0.992	S2: 0.99	S3: 0.984

Gold

Shifting our analysis from the currencies, we can see that Gold took a breather from its downward drop after bouncing off $1713.30. Its currently at $1724.90, right around its next level of resistance at $1727.

Resistance	R1: 1727.10	R2: 1739.44	R3: 1757.84
Support	S1: 1713.10	S2: 1707.12	S3: 1694.14

Daily Calendar for Monday , October 22

Time	Currency	Event	Actual	Forecast	Previous
11:30 EST	USD	3-Month  Bill Auction			0.105%
11:30 EST	USD	6-Month  Bill Auction			0.15%

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

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