Daily Market Analysis – US Dollar Index Remains Strong

03/28/2013

For those hoping for a meaningful correction in the US dollar index’s strong uptrend, it looks like it’s going to take more than just worse than expected US quarterly GDP numbers to change the trend. Also, the worse than expected US employment numbers didn’t have any measurable impact on the US dollar’s direction.  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 1.3047 to start the week, the pair has dropped like a rock reaching 1.2750 in Wednesday’s trading. It’s currently trading at 1.2831. 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 1.2770 on February 6^th, it’s current price of 1.2089 has many asking if a short term bottom has been reached. Needless to say, the trend remains down for this currency pair. The pairs first level of support is 1.2020 followed by 119.75. Economic events that could move the pair are due for release at 19:30 pm EST. Below is a chart of the day’s important economic events.

Resistance	R1: 1.2085	R2: 121.45	R3: 121.85
Support	S1: 1.2020	S2: 119.75	S3: 118.70

GBPUSD

After reaching 1.6379 to start the year, the pair has fallen a devastating 1200 pips to 1.4829 on March 12. It’s retraced some of the decline to its current level of 1.5168. 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

Gold appears to have reached its retracement target, hitting $1620 on February 26th. It’s been trading sideways over the past several weeks and is currently at $1597.87.   If gold heads lower, price levels to watch are $1586.25 and $1578.37.

Resistance	R1: 1605.00	R2: 1608.72	R3: 1623.03
Support	S1: 1586.25	S2: 1578.37	S3: 1560.70

 

Daily Calendar for Thursday, March 28^th 2013   

Time	Currency	Event	Actual	Forecast	Previous
8:30	USD	GDP (QoQ)	0.4%	0.5%	0.1%
8:30	USD	Initial Jobless Claims	357k	340k	336k
9:45	USD	Chicago PMI	52.4	56.5	56.8
19:30	JPY	Tokyo Core CPI(YoY)		-0.6%	-0.6%
19:50	JPY	Industrial Production(MoM)		2.6%	0.3%

Successful Trading!

Jacob Fendrich
Senior Market Analyst

http://www.CMTrading.com 

        

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