Thursday, October 18, 2012

Daily Market Analysis - October 18, 2012


Global equity and currency markets are continuing to show strength as we head into the end of the trading week. Already released today were better than expected UK Retail Sales. US employment data and the Philadelphia Fed Manufacturing Index numbers will be released later today. Also happening is the EU summit in Brussels, where European leaders will continue 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
The pair is trading at 1.3105 and appears ready to break above important resistance at 1.3170, which would lead to the possibility of reaching the mid-1.32 level. As long as the pair holds above 1.30, the pair will remain in its current uptrend. Data coming of the US are Continuing Jobless Claims and Initial Job Claims at 8:30 EST. If these numbers are positive, it could be bullish for the EURUSD. Also due to be released is the Philadelphia Fed Manufacturing Index numbers at 10 EST that if better than expected could be bearish for the EURUSD.

Resistance
R1: 1.314
R2: 1.3175
R3: 1.327
Support
S1: 1.2970
S2:1.3015              
S3: 1.3085

 

GBPUSD
Following this morning’s release of UK Retail Sales, the stream of positive economic data continues to give more hope that the pairs uptrend may continue.  After bouncing off support at around the 1.6110 level, it climbed up to 1.6170 where it faces resistance. If the pair breaks convincingly above this level, 1.6215 is the next price objective. 1.6110 continues to be a significant support level for the pair to hold above for those fx traders bullish on the pair.

Resistance
R1: 1.6180
R2: 1.614
R3: 1.6215
Support
S1: 1.6110
S2: 1.6045
S3: 1.5975
  
 

USDCAD
The pair has been trading sideways since the end of September between .9726 and .9885. It’s now near the bottom of this range. It’s currently at .9776 and its price could be affected by the Canadian Wholesale Sales number being released at 8:30 EST.

Resistance
R1: 0.979
R2: 0.9825
R3: 0.987
Support
S1: 0.9765
S2: 0.9745
S3: 0.973




Gold
Shifting our analysis from the currencies, we can see that Gold continues to form a floor around support at the $1743 level.  It will need to get above $1759.63 if the shiny metal is to continue higher.

Resistance
R1: 1759.63
R2: 1764.59
R3: 1777.40
Support
S1: 1743.70
S2: 1731.5
S3: 1722.30


Daily Calendar for Thursday, October 18
Time
Currency
Event
Actual
Forecast
Previous
4:30 EST
GBP
Retail Sales(YoY)
2.5%
2.1%
2.5%
4:30 EST
GBP
Retail Sales(MoM)
0.6%
0.4%
-.1%
8:30 EST
CAD
Wholesale Sales(MoM)

0.2%
-0.6%
8:30 EST
USD
Continuing Jobless Claims

3275K
3273K
20:30EST 
USD
Initial Jobless Claims

365K
339K
22:00EST
USD
Philly Fed Manufacturing Index

1.0
-1.9

Successful Trading!

Jacob Fendrich
Senior Market Analyst

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