CM Trading Blog

Daily Market Analysis – August 21^st , 2013

US FOMC Day

Investors and currency traders will be eyeing the markets with bated breath as once again all of the major markets are at a near term turning point. More specifically, one of the most volatile Later today, traders will be able to see the effect of the much anticipated US FOMC meeting on the various markets. Be prepared for quite a bit of volatility around this economic event. For those interested in a more in depth analysis, we at CMTrading 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 those trading the long side. It will need to hold above 1.3375 if it is to continue its uptrend. Below this level could see it return to 1.3330 in a hurry. The upside seems limited with its high of the last 6 months coming in at 1.3450.

Resistance	R1: 1.3430	R2: 1.3450	R3: 1.3475
Support	S1: 1.3400	S2: 1.3375	S3: 1.3330

GBPUSD

Holding above 1.5640 is crucial and so far so good. It bounced off 1.5649 at the markets open and is currently trading at 1.5667 with major resistance of 1.5700 looming overhead.

Resistance	R1: 1.5695	R2: 1.5730	R3: 1.5765
Support	S1: 1.5640	S2: 1.5610	S3: 1.5525

USDCAD

The pair has trading in a 200 pip range since mid-July. It’s currently near the top of its range at 1.0428. There is major resistance overhead at 1.0443 and the pair will need to stay above 1.0400 to maintain its uptrend.

Resistance	R1: 1.0425	R2: 1.0445	R3: 1.0475
Support	S1: 1.0415	S2: 1.0375	S3: 1.035

Gold

Shifting our analysis from the currencies, we can see that Gold has moved up quite a bit since reaching $1180.28 in late June. Its currently at $1367.04, right around its next level of resistance at $1382.80.