Natural Gas Fundamental Analysis November 8, 2012, Forecast

Natural Gas Fundamental Analysis November 8, 2012, Forecast
Natural Gas Fundamental Analysis November 8, 2012, Forecast

Analysis and Recommendations:

Natural Gas is trading at 3.591 down just a few cents. Natural Gas is one of the few commodities not jumping up and down today in response to the US elections. The commodity is weak as residential demand has diminished on fairly normal temperatures and little call for other demand now that the Hurricane has passed and storm season in the gulf region has ended. Natural Gas will wait for tomorrow’s week inventory to see price movement.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data November 7, 2012 actual v. forecast

Nov. 07

 

CHF

 

 

CPI (MoM) 

0.1%

 

0.3%

 

0.3%

 

 

EUR

 

 

Retail Sales (MoM) 

-0.2%

 

-0.1%

 

0.2%

 

 

EUR

 

 

German Industrial Production (MoM) 

-1.8%

 

-0.5%

 

-0.4%

 

WEEKLY

 

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date

Time

Currency

Event

Forecast

Previous

Nov. 08

12:00

GBP

Interest Rate Decision 

0.50%

0.50%

 

12:00

GBP

BOE QE Total 

375B

375B

 

12:45

EUR

Interest Rate Decision 

0.75%

0.75%

Nov. 09

01:30

CNY

Chinese CPI (YoY) 

1.9%

1.9%

 

01:30

CNY

Chinese PPI (YoY) 

-2.7%

-3.6%

 

01:30

CNY

Chinese CPI (MoM) 

0.1%

0.3%

 

05:30

CNY

Chinese Fixed Asset Investment (YoY) 

20.6%

20.5%

 

05:30

CNY

Chinese Industrial Production (YoY) 

9.4%

9.2%

 

05:30

CNY

Chinese Retail Sales (YoY) 

14.1%

14.2%

 

07:00

EUR

German CPI (MoM) 

 

 

 

07:00

EUR

German CPI (YoY) 

2.0%

2.0%

 

09:30

GBP

Trade Balance 

-8.9B

-9.8B

Government Bond Auction

Date Time Country 

Nov 08 9:30 Spain 

Nov 08 10:10 Sweden 

Nov 08 16:30 Italy  

Nov 08 18:00 US 

Nov 09 11:00 Belgium 

Nov 09 16:30 Italy

Silver Fundamental Analysis November 8, 2012, Forecast

Silver Fundamental Analysis November 8, 2012, Forecast
Silver Fundamental Analysis November 8, 2012, Forecast
Analysis and Recommendations:

Silver followed the metals pack and gold’s lead to dip almost 46 cents today, to trade at 31.575. With the elections over and the initial reaction to the outcome passed the US dollar regained its momentum from earlier in the week and commodities declines once again with gold leading the pack. Precious metals and industrial metals tumbled in afternoon trading.

Precious metals and industrial metals prepared for the Chinese data dump due on Thursday..

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our  weekly reports.

Economic Data November 7, 2012 actual v. forecast

Nov. 07

 

CHF

 

 

CPI (MoM) 

0.1%

 

0.3%

 

0.3%

 

 

EUR

 

 

Retail Sales (MoM) 

-0.2%

 

-0.1%

 

0.2%

 

 

EUR

 

 

German Industrial Production (MoM) 

-1.8%

 

-0.5%

 

-0.4%

 

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date

Time

Currency

Event

Forecast

Previous

Nov. 08

12:00

GBP

Interest Rate Decision 

0.50%

0.50%

 

12:00

GBP

BOE QE Total 

375B

375B

 

12:45

EUR

Interest Rate Decision 

0.75%

0.75%

Nov. 09

01:30

CNY

Chinese CPI (YoY) 

1.9%

1.9%

 

01:30

CNY

Chinese PPI (YoY) 

-2.7%

-3.6%

 

01:30

CNY

Chinese CPI (MoM) 

0.1%

0.3%

 

05:30

CNY

Chinese Fixed Asset Investment (YoY) 

20.6%

20.5%

 

05:30

CNY

Chinese Industrial Production (YoY) 

9.4%

9.2%

 

05:30

CNY

Chinese Retail Sales (YoY) 

14.1%

14.2%

 

07:00

EUR

German CPI (MoM) 

 

 

 

07:00

EUR

German CPI (YoY) 

2.0%

2.0%

 

09:30

GBP

Trade Balance 

-8.9B

-9.8B

Government Bond Auction

Date Time Country 

Nov 08 9:30 Spain 

Nov 08 10:10 Sweden 

Nov 08 16:30 Italy  

Nov 08 18:00 US 

Nov 09 11:00 Belgium 

Nov 09 16:30 Italy

USD/JPY Fundamental Analysis November 8, 2012, Forecast

USD/JPY Fundamental Analysis November 8, 2012, Forecast
USD/JPY Fundamental Analysis November 8, 2012, Forecast

Analysis and Recommendation:

The USD/JPY is trading at 80.05, although the pair has maintained the momentum to hold above the 80 line, the initial reaction to Mr. Obama’s win has dropped the pair closer to the line. The pair was trading well above at 80.35 as markets opened this morning.

Although once this initial reaction has subsided, traders go back to find more risk and the world moves on, we can expect to see the JPY weaken and see the dollar push the pair back to the 80.20 range.

Public comments from officials at the MoF and policymakers at the BoJ are bearish JPY, as they continue to suggest a confidence in last week’s easing measures and commitment toward cooperation.  Additionally, the domestic political environment remains challenging, given the standoff over a deficit financing bill, as credit rating agencies have recently expressed concern about the impact of uncertainty

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data November 7, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Nov. 06

 

USD

 

 

US Presidential Election 

 Obama Wins

 

There were no other releases this morning in Asia

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date

Time

Currency

Event

Forecast

Previous

Nov. 08

00:30

AUD

Employment Change 

 

14.5K

Nov. 09

01:30

CNY

Chinese CPI (YoY) 

1.9%

1.9%

 

01:30

CNY

Chinese PPI (YoY) 

-2.7%

-3.6%

 

01:30

CNY

Chinese CPI (MoM) 

0.1%

0.3%

 

05:30

CNY

Chinese Fixed Asset Investment (YoY) 

20.6%

20.5%

 

05:30

CNY

Chinese Industrial Production (YoY) 

9.4%

9.2%

 

05:30

CNY

Chinese Retail Sales (YoY) 

14.1%

14.2%

Government Bond Auction

Date Time Country 

Nov 08 9:30 Spain 

Nov 08 10:10 Sweden 

Nov 08 16:30 Italy  

Nov 08 18:00 US 

Nov 09 11:00 Belgium 

Nov 09 16:30 Italy

AUD/USD Fundamental Analysis November 8, 2012, Forecast

AUD/USD Fundamental Analysis November 8, 2012, Forecast
AUD/USD Fundamental Analysis November 8, 2012, Forecast

Analysis and Recommendation:

The AUD/USD is trading at 1.0453. The analysis today will be the same for all Asian currencies. The US dollar weakened this morning after Mr. Obama was declared the winner of the US election. Markets simply are returning to their previous points and of course there are the knee jerk reactions, but America remains in the same hands and the same policies as before. There is no eco data today so markets are expected to move their focus back to the ECB and the EU, where Greece is going to be the main mover and shaker. Although for the NZD and the AUD, the focus will also shift to tomorrow mornings Chinese data dump, which is expected to show a stronger recovery in China, which will support the Pacific currencies and economies

The AUD remains strong after positive eco data in Oz on Monday, which showed a narrowing trade balance and the RBA holding rates, which should continue to support the Aussie as we wait for tomorrow’s employment numbers. Yesterday, Glenn Stevens, Governor of the RBA surprised traders by holding rates at 3.25 when markets had expected another decrease to 3.0. Mr. Stevens is always unpredictable.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data November 7, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Nov. 06

 

USD

 

 

US Presidential Election 

 Obama Wins

 

There were no other releases this morning in Asia

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date

Time

Currency

Event

Forecast

Previous

Nov. 08

00:30

AUD

Employment Change 

 

14.5K

Nov. 09

01:30

CNY

Chinese CPI (YoY) 

1.9%

1.9%

 

01:30

CNY

Chinese PPI (YoY) 

-2.7%

-3.6%

 

01:30

CNY

Chinese CPI (MoM) 

0.1%

0.3%

 

05:30

CNY

Chinese Fixed Asset Investment (YoY) 

20.6%

20.5%

 

05:30

CNY

Chinese Industrial Production (YoY) 

9.4%

9.2%

 

05:30

CNY

Chinese Retail Sales (YoY) 

14.1%

14.2%

Government Bond Auction

Date Time Country 

Nov 08 9:30 Spain 

Nov 08 10:10 Sweden 

Nov 08 16:30 Italy  

Nov 08 18:00 US 

Nov 09 11:00 Belgium 

Nov 09 16:30 Italy

EUR/JPY Fundamental Analysis November 8, 2012, Forecast

EUR/JPY Fundamental Analysis November 8, 2012, Forecast
EUR/JPY Fundamental Analysis November 8, 2012, Forecast

Analysis and Recommendations:

The EUR/JPY is trading at 102.95. The euro is trading in a fairly low range against the US dollar although it has picked up momentum this morning after Mr. Obama was declared the winner in the hotly contested US election. The JPY is weak as the BoJ and government officials try to add stimulus to the economy to jump start the slowing growth and export markets.

Once the knee-jerk election reaction passes, we expect the tone towards EUR to turn bearish again. The intensity over the escalation of both political and funding problems for Greece is concerning and should limit EUR rallies. Thursday’s ECB meeting is unlikely to prove EUR positive and the market is likely to refocus on Europe after being sidelined by the US over the last several weeks

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our  weekly reports and we provide daily updates and outlooks

Economic Data November 7, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Nov. 06

 

USD

 

 

US Presidential Election 

 Obama Wins

 

There were no other releases this morning in Asia

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date

Time

Currency

Event

Forecast

Previous

Nov. 08

00:30

AUD

Employment Change 

 

14.5K

Nov. 09

01:30

CNY

Chinese CPI (YoY) 

1.9%

1.9%

 

01:30

CNY

Chinese PPI (YoY) 

-2.7%

-3.6%

 

01:30

CNY

Chinese CPI (MoM) 

0.1%

0.3%

 

05:30

CNY

Chinese Fixed Asset Investment (YoY) 

20.6%

20.5%

 

05:30

CNY

Chinese Industrial Production (YoY) 

9.4%

9.2%

 

05:30

CNY

Chinese Retail Sales (YoY) 

14.1%

14.2%

Government Bond Auction

Date Time Country 

Nov 08 9:30 Spain 

Nov 08 10:10 Sweden 

Nov 08 16:30 Italy  

Nov 08 18:00 US 

Nov 09 11:00 Belgium 

Nov 09 16:30 Italy

NZD/USD Fundamental Analysis November 8, 2012, Forecast

NZD/USD Fundamental Analysis November 8, 2012, Forecast
NZD/USD Fundamental Analysis November 8, 2012, Forecast

Analysis and Recommendation:

The NZD/USD is trading at 0.8278. The analysis today will be the same for all Asian currencies. The US dollar weakened this morning after Mr. Obama was declared the winner of the US election. Markets simply are returning to their previous points and of course there are the knee jerk reactions, but America remains in the same hands and the same policies as before. There is no eco data today so markets are expected to move their focus back to the ECB and the EU, where Greece is going to be the main mover and shaker. Although for the NZD and the AUD, the focus will also shift to tomorrow mornings Chinese data dump, which is expected to show a stronger recovery in China, which will support the Pacific currencies and economies.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data November 7, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Nov. 06

 

USD

 

 

US Presidential Election 

 Obama Wins

 

There were no other releases this morning in Asia

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date

Time

Currency

Event

Forecast

Previous

Nov. 08

00:30

AUD

Employment Change 

 

14.5K

Nov. 09

01:30

CNY

Chinese CPI (YoY) 

1.9%

1.9%

 

01:30

CNY

Chinese PPI (YoY) 

-2.7%

-3.6%

 

01:30

CNY

Chinese CPI (MoM) 

0.1%

0.3%

 

05:30

CNY

Chinese Fixed Asset Investment (YoY) 

20.6%

20.5%

 

05:30

CNY

Chinese Industrial Production (YoY) 

9.4%

9.2%

 

05:30

CNY

Chinese Retail Sales (YoY) 

14.1%

14.2%

Government Bond Auction

Date Time Country 

Nov 08 9:30 Spain 

Nov 08 10:10 Sweden 

Nov 08 16:30 Italy  

Nov 08 18:00 US 

Nov 09 11:00 Belgium 

Nov 09 16:30 Italy

NASDAQ 100 Index Futures Forecast November 7, 2012, Technical Analysis

The NASDAQ futures rose drastically during the session on Tuesday as the 2600 level continues offer a buffer for the buyers to get involved. It appears that we are currently consolidating between 2620 700, and as such we think that short-term range bound trading will be the way to go in the near-term.

It cannot be ignored that the US Presidential elections were during the session, and as such we could have a breakout. If that happens, it is quite simple: we will follow whichever direction the market goes. A breakout to the upside has as buying, why breakout to the downside has a selling aggressively.

 

NASDAQ 100 Index Futures Forecast November 7, 2012, Technical Analysis
NASDAQ 100 Index Futures Forecast November 7, 2012, Technical Analysis

MIB Futures Forecast November 7, 2012, Technical Analysis

The Milanese stocks fell initially during the session on Tuesday, as we see and this futures chart. However, we did get bullish action by the end of the day and formed a hammer to close out the Tuesday session. This hammer suggests that we are going higher, but we are currently grinding out a symmetrical triangle suggesting that we will have a sharp move sooner or later. With this in mind, we are very hesitant to take position in this market at the moment, but a move above 16,200 would have us buying hand over fist. As for selling, a move below 15,000 would be very bad news.

 

MIB Futures Forecast November 7, 2012, Technical Analysis
MIB Futures Forecast November 7, 2012, Technical Analysis

IBEX 35 Futures Forecast November 7, 2012, Technical Analysis

Spanish stocks had a slightly negative session on Tuesday, as the consolidation in the futures market continues. The €8000 level continues to be very resistive, while the €7800 level continues to be extremely supportive. We have gone to a point where something simply needs to give way, and as such we think a sharp move is coming in the near-term. We see an uptrend line that the market formed a hammer for the Tuesday session also, and this suggests that we will attempt another break of the €8000 area. However, this market looks sloppy, nasty, and quite confused at the moment. Because of this, we are currently on the sidelines until we break out of this general vicinity.

 

IBEX 35 Futures Forecast November 7, 2012, Technical Analysis
IBEX 35 Futures Forecast November 7, 2012, Technical Analysis

CAC 40 Index Futures Forecast November 7, 2012, Technical Analysis

The CAC 40 futures fell initially during the Tuesday session, but bounced in order to form a nice looking hammer at the end of the day. This is immediately after the shooting star that was formed on Monday, and repelled at the €3500 level. This looks like we are ready to start grinding higher again, but it is so messy in this general vicinity with the conflicting candles that we are simply going to stay on the sidelines.

It would take a significant break higher in order for us to start buying again. €3600 would be the resistance level that we would be more than willing to start taking long-term buying positions. As for selling, we need to see the €3350 level break as support in order for us to do so.

 

CAC 40 Index Futures Forecast November 7, 2012, Technical Analysis
CAC 40 Index Futures Forecast November 7, 2012, Technical Analysis

S&P 500 Index Futures Forecast November 7, 2012, Technical Analysis

The S&P 500 Index futures shot straight up during the session on Tuesday, as we bounced off of the 1400 level yet again. However, we are pressing against the 1425 level, which of course is resistance. This looks like a simple retest of the resistance, and we will have to wait and see if we can break above the highs from the Friday session of last week. If that happens, we would be long.

Alternately, we think that we could continue the consolidation down to the 1400 level. If that level gives way though, we would be aggressively short of this market.

 

S&P 500 Index Futures Forecast November 7, 2012, Technical Analysis
S&P 500 Index Futures Forecast November 7, 2012, Technical Analysis

FTSE 100 Index Futures Forecast November 7, 2012, Technical Analysis

The FTSE 100 Index futures rose during the session on Tuesday as we bounced from the 5800 level yet again. We have progressively been seen higher lows and a general grinding higher of this market. However, the 5900 level begins the resistive zone all the way up to the 6000 point. The 6000 level must be taken out to the upside for the FTSE to continue higher, and we are far too close to the resistance zone in order to start buying now. We understand that the market looks very healthy, but until it’s proven to be strong and ready to break out, we must sit on the sidelines a daily close above 6000 has as buying this market and holding on to our positions for massive gains. As for selling, we do not have that in mind at the moment.

 

FTSE 100 Index Futures Forecast November 7, 2012, Technical Analysis
FTSE 100 Index Futures Forecast November 7, 2012, Technical Analysis

Dow Jones Industrial Average Futures Forecast November 7, 2012, Technical Analysis

The Dow Jones Industrial Average futures rose during the session on Tuesday as we bounced from the 13,000 level yet again. The present area reaches to the 13,200 level, and is very much consolidation. If we can get above the Friday highs, we think we would continue to grind higher to roughly the 13,500 level. However, we also see the possibility of a return to consolidation and down to the 13,000 level. With the US presidential elections going on during the session on Tuesday, is very difficult to read too much into these charts until the election results are known. Once they are, we can judge a reaction out of the marketplace with a little bit more confidence.

 

Dow Jones Industrial Average Futures Forecast November 7, 2012, Technical Analysis
Dow Jones Industrial Average Futures Forecast November 7, 2012, Technical Analysis

US Dollar Index Forecast November 7, 2012, Technical Analysis

The US Dollar Index rose during the session on Tuesday, but was repelled at the 81 handle. With the United States trying to elect a President during the session, this of course will have a great influence on how the US dollar moves in general. With this being said, it is very difficult to take the results of the session to heart, as the election results won’t be in until after the end of the session.

The 81 handle is the beginning of significant resistance, so it makes sense that we fail to break over it during the session. The candle for Tuesday is in fact a shooting star, but if a surprise election result comes about, the candle shape will mean very little.

It is assumed that the market must be thinking that Obama will be reelected, as his administration has been very quick to spend, and the Federal Reserve has been printing the Dollar hand over fist during the last four years. It is well-known that Gov. Romney is not a big fan of how the Federal Reserve has been acting, and will certainly not re-nominate Ben Bernanke for Federal Reserve Chairman. With this being said, a Romney win would be extremely strong for the dollar as we suddenly would see a tighter monetary policy out of the United States.

Is because of this it is very difficult to suggest a trade at this point in time. However, if we managed to break above the 81 handle and the Romney campaign manages to win the presidency, we believe this market will rise quite rapidly. More than likely, during the session the Dollar bulls simply pullback at the first sign of resistance, as the elections were an unknown quantity.

If we fall, one has to think that there is a lot of noise below, and we could find support relatively quick. It really is going to come down to how traders see the possibility of a financial cliff solution coming over the next couple of months. If they don’t see much of a chance, this market will become extremely erratic.

 

US Dollar Index Forecast November 7, 2012, Technical Analysis
US Dollar Index Forecast November 7, 2012, Technical Analysis

Silver Forecast November 7, 2012, Technical Analysis

The silver markets rose rapidly during the session on Tuesday in order to test the $32.00 level as resistance. We are closing at the very top of the range for the session, and this of course shows extreme strength. This leads us to believe that the bullishness in the silver markets will continue, but it will more than likely also be greatly affected by the US Presidential elections today, and what happens with the US dollar. Quite simply put, if we can get above the resistance just above the $32.50 level, silver should be off to the races. Alternately, if we break the $31.00 level, we will be looking for supportive candles to buy silver going forward.

 

Silver Forecast November 7, 2012, Technical Analysis
Silver Forecast November 7, 2012, Technical Analysis

Crude Oil Prices November 7, 2012, Technical Analysis

The light sweet crude markets absolutely exploded during the session on Tuesday. The end of the session saw the market closing at the top of the range, right around the $80.50 level. This is the beginning of resistance however, and as such we think that the upside is somewhat limited. The 80 $80.50 level is the beginning of significant noise all the way up to the $99.50 area. Because of this, we think that a weak candle will be a nice selling opportunity. The downturn that we have had over the last couple of months is still very valid, and we think that a continuation of this could very well happen at the $90 area.

 

Crude Oil Prices November 7, 2012, Technical Analysis
Crude Oil Prices November 7, 2012, Technical Analysis

Natural Gas Forecast November 7, 2012, Technical Analysis

The natural gas markets rose like we had suspected and has now shown it to be supported in this general vicinity. We said that a break of the $3.60 level would convince us that this market was going higher, and we have touched that level. Because of this, a break of the candle for the Tuesday session highs would have us buying natural gas again. Going forward, we think that the $3.80 level would be resistive, but we also think that it is a short-term resistance area that will be overcome. The gap has been filled for the most part, and as such we do think that the buyers can step back into play.

 

Natural Gas Forecast November 7, 2012, Technical Analysis
Natural Gas Forecast November 7, 2012, Technical Analysis

Gold Prices November 7, 2012, Technical Analysis

The gold markets skyrocketed during the session on Tuesday as the United States started to try and elect the next US President. With this being a presidential election, there are a lot of things up for grabs and the gold market will certainly be a great place to see how the world reacts to the elections.

Simply put, it appears that the market believes that president Obama could be reelected. This would be reflected by higher gold prices as the US dollar weakens. This is because of the spending that the Obama presidency has done over the last four years. Compounding this is the Federal Reserve and its incredible amount of spending. If Gov. Romney wins the election, this would actually be a complete reversal of this sentiment.

As the United States weakens its currency by spending, gold should rise. We still believe in the long term viability of buying gold, as there are plenty of central banks around the world that are both buying it, and printing paper currency. However, the election results will greatly affect the short-term movement of this market. It is because of this that we are very cautious in trading at this point time.

The $1725 level represents significant resistance, and if we get over that the gold market should continue much higher. However, we think a pullback will simply offer buying opportunity in the long run, and we will not sell gold. In fact, we are more than willing to let it fall precipitously in order to get a nice cheap price on one of the most bullish markets out there.

We don’t see a significant downturn in this market until we get below the $1500 level. Looking at this chart, we think that the $1500 level will be very difficult to flow through to the downside, and as a result, we think it is only a matter of time before we start buying gold hand over fist in the futures market. We already own physical gold, and the ETF known as GLD for a core position. Going forward at this point, we only see bullishness going forward.

 

Gold Prices November 7, 2012, Technical Analysis
Gold Prices November 7, 2012, Technical Analysis

USD/JPY Forecast November 7, 2012, Technical Analysis

The USD/JPY pair bounced fairly hard off of the 80 handle during the session on Tuesday, and formed a green hammer. This pair is essentially waiting the results of the US Presidential election, and as such did very little during the day.

If the incumbent Obama wins, this should be dollar negative and send this pair lower. However, the Bank of Japan is below and willing to defend this pair if it falls too far. As for a win by Gov. Romney, this would be pro-dollar and should send this pair significantly higher. This would essentially bring in a new era of American monetary tightening in the near future, while the Japanese are still expanding their monetary  policy. In essence, this is become a fundamental trade, and not a technical one.

 

USD/JPY Forecast November 7, 2012, Technical Analysis
USD/JPY Forecast November 7, 2012, Technical Analysis

USD/CAD Forecast November 7, 2012, Technical Analysis

The USD/CAD currency pair fell during the session on Tuesday as the 200 day moving average offers resistance. However, the 0.9900 level is support and we have to see whether or not we are going to break to the upside, or the downside of this general vicinity.

We look at this area as a 100 pips wide region of confluence, and as such we need to break significantly below 0.9900, or significantly above 1.0000 in order to place a trade with any confidence right now. As such, we are waiting for a serious breakout or break down in order to get involved.

 

USD/CAD Forecast November 7, 2012, Technical Analysis
USD/CAD Forecast November 7, 2012, Technical Analysis