Euro sets up to challenge 2012 highs

Daily Market Analysis (SHORT TERM) Wednesday 12/12/2012

KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

CURRENCIES

Euro FX (December):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 12/11/12 @ 1.2975. Confirmation of a bottom with a close violation on 12/11/12 @ 1.3004. Upside Targets = 1.3183 – 1.3245.
  • The December Euro FX went along with the recent bullish momentum the market has accumulated over the past month on Tuesday as it confirmed a ST bottom and closed back above the 1.30 mark.
  • With expectations that FOMC will announce additional easing measures that should suppress the dollar’s value, the euro should rise to crack the highs of the last few months and challenge the 2012 highs early in the new year.
  • Projected Daily Range: .0082
  • Projected Weekly Range: .0219
  • Projected Monthly Range: .0456

METALS

COMEX Gold (February ‘13):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 11/28/12 @ 1729.90. Confirmation of a top with a close violation on 11/28/12 @ 1718.80. Downside Target = 1707.20 – 1694.70
  • Inside VRCB generated on Tuesday.
  • February Gold traded within an extremely thin range on Tuesday to pare some of Monday’s gains and put a halt to the recent three-day rally due to fiscal cliff concerns and investor uncertainty.
  • Look for Gold to resume its bullish momentum on Wednesday and track down last week’s high of $1,724.90 before going after the weekly upside target of $1,746.40.
  • Projected Daily Range: 16.10
  • Projected Weekly Range: 43.10
  • Projected Monthly Range: 94.70

 

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 12/07/12 @ 1415.00. Confirmation of a bottom with a close violation on 11/20/12 @ 1386.25. Upside Targets = 1404.00 – 1420.00.
  • New highs made on current move Tuesday @ 1434.25.
  • The December S&Ps logged their best one day advance in three weeks on Tuesday as they broke through the recent resistance at 1425 and the November highs at 1430.50 to close at their highest level since Oct. 18.
  • This technical violation opens the door for the S&Ps to trade up to 1452 but will require some fundamental help from the piles of economic data to be released this week along with the extension of easing measures from the FOMC meeting.
  • Projected Daily Range: 14.50
  • Projected Weekly Range: 37.00
  • Projected Monthly Range: 81.50
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