Market Trends and Predictions 8th October 2013

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Market Trends and Predictions 08102013 Binary Options Wire

Below you will find technical analysis of the top forex pairs, commodities, stocks and indices to watch in today’s trading.

EUR/USD

On Monday, the EUR/USD increased slightly, even though the Euro was under pressure during the European session and therefore the pair’s upward movement was limited. The sentiment in the Eurozone dipped in October after recording its second strongest level ever in September, but it nevertheless remained in positive territory for a second consecutive month. Without any other surprising and important economic data the pair was traded with low volatility. The only break in the quiet day we could have seen after 2.00PM (GMT) when Barack Obama refused any further negotiation, until agreement is reached for raising the US debt ceiling. Today, we should look out for the announcement of the German Trade Balance at 6.00AM (GMT) and German Factory Orders at 10.00AM (GMT). Last time round, both results came out under expectation, so if the data shows once again worse-than-expected results, then we might see the Euro again under pressure. Such pressure however might be tempered by concerns over the U.S. shutdown. The trend is now slightly bullish, but as the situation stays not clear we do not suggest longer-term trades. The support is found at 1.3535 and resistance at 1.3590.

Trend: Slightly Up

GBP/USD

The GBP/USD currency pair, despite pressure from last week rebounded and did not break its support. The pair then increased and touched the level of 1.6100. Today, during the Asian session the pair is slightly correcting its gains and thus decreased to 1.6070. However, this consolidation should not be taken as a trend. Today there is no important economic news to watch out for, so we can expect another quiet day. Tomorrow, the U.K. Manufacturing Production and BOE Credit Conditions Survey and the U.K. NIESR GDP Estimate will all be announced and consequently we should carefully watch this result because it is usually connected with high volatility. The trend is slightly bullish with support at 1.6000 and resistance at 1.6100.

Trend: Slightly Up

USD/JPY

The USD/JPY pair dropped yesterday mainly due to the fact that the U.S. government has still to reach an agreement on raising the U.S. debt ceiling and the Japanese Yen is considered a safe-haven currency. Yesterday, at 23.50PM (GMT) the Japanese Current Account was released and showed a very disappointing balance of 0.35T instead of the expected 0.65T. This surprisingly bad data pulled the pair up above 97.00. At 23.50PM (GMT) the Monetary Policy Meeting Minutes will be released. Most probably we should not expect anything new to come out of that, just a summary of the last month. The pair is now slightly bearish with support at 96.60 and resistance at 97.20.

Trend: Slightly Down

GOLD

The price of gold went up and broke its resistance at $1,323/ounce. The price then climbed to $1,327/ounce, where it stopped and it is now ranging around the level. Today, the China market reopens again after a week of vacation, so we should be able to see bigger demand from the physical market, which should pull the price of gold up. Gold is also starting to react to situation in the U.S. over the budget, and is consequently adding some profits. However, it is too risky for most of the investors to put longer-term investments into this asset, as there is expectation of a tapering of monetary stimulus by the Fed coming up some time soon. The trend is still slightly up with support at 3,108.3 and resistance at 1,337.

Trend: Slightly Up

 

 

Disclaimer: The information in Market Trends and Predictions analysis should serve for informative purposes only. Binary Options Wire shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of forex pairs, commodities, stocks or indices.

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