Daily Market Analysis –Markets Downward Bias Continues

After being range bound for the last two months, most of the markets seem to be breaking out of this trading pattern to the downside. It remains to be seen what will rescue the markets from their downward slide. Today’s big event is the US presidential election. It will be interesting to see how and if that changes market conditions. It’s more likely, however, that tomorrow’s European Central Bank (ECB) press conference will have more of an impact on the market.    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 currency pair is currently trading at 1.2775, slightly above its 1.2750 support level. If the pair gets above 1.28, its next level up is 1.2840.  At 6:00am, data on monthly German Factory Orders will be released.

Resistance	R1: 1.28	R2: 1.284	R3: 1.2895
Support	S1: 1.2765	S2: 1.275	S3: 1.2635

 

AUDUSD

Yesterday’s higher than expected interest rate announcement from the Reserve Bank of Australia proved to be quite bullish for the currency pair. Its currently trading at 1.0427 and its next level up is at 1.0475. If it breaks above this level, 1.0520 becomes a possibility. In the other direction, 1.0415 is the first support level followed by 1.0365. 

Resistance	R1: 1.0435	R2: 1.0475	R3: 1.0520
Support	S1: 1.033	S2: 1.0365	S3: 1.0415

 

USDCAD

The USDCAD is currently trading at .9949.  Its next level on the downside is .9940 followed by .9920. On the upside, the first resistance level is .9955 followed by .9975.  At 10:00am the Ivey Purchasing Managers’ Index(PMI) numbers are being reported. This report measures the activity level of purchasing managers in Canada. If this number is higher than expected, this would be bullish for the CAD.  

Resistance	R1: .9955	R2: .9975	R3: 1.001
Support	S1: 0.994	S2: 0.9920	S3: 0.9900

 Gold

Gold’s low for the current move down has been $1672.50. Its recovered nicely from that low and is currently trading at $1688.70. For the upmove to continue, its first target is at $1695.75 followed by $1707.84. On the downside its next level of support is at $1670.44 followed by $1655.00. 

Resistance	R1: 1695.75	R2: 1707.84	R3: 1716.23
Support	S1: 1670.44	S2: 1665.00	S3: 1655.30

Daily Calendar for Tuesday, November 6th

Time	Currency	Event	Actual	Forecast	Previous
06:00EST	EUR	German Factory Orders		-0.5%	-1.3%
10:00 EST	CAD	Ivey PMI		58.0	60.40

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

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