Market Research and Analysis

Daily Market Analysis Report

Wed, 07 Dec 2016 03:57 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.0950 – 1.0600
  • Support & Resistance Levels:
  • R3: 1.082
  • R2: 1.0787
  • R1: 1.0766
  • Pivot Point: 1.0733
  • S1: 1.07
  • S2: 1.0679
  • S3: 1.0646
  • Trading Recommendation:
  • (Still Active)
  • Sell Below: 1.07995
  • Take Profit:
  • 1st @ 1.0741
  • 2nd @ 1.0690
  • Stop Loss @ 1.0810

EURUSD

The EURUSD took a breather on Tuesday after showing solid bullish momentum on Monday. The pair is trading at 1.0718 after placing a high of 1.07819 in the early Asian Sessions. EURO as a single currency strengthened after the Germany factory orders showed a dramatically positive change. Later in New York session, the pair fell from previously selling levels. Overall the high to low movement remained 92 pips with a high of 1.0781 and a low of 1.0676.

7-dec-eur
Fundamental Overview

Fundamentally, Based on provisional data, the Federal Statistical Office  reports that price-adjusted new orders in manufacturing had increased in October 2016 a seasonally and working-day adjusted 4.9% on September 2016. For September 2016, revision of the preliminary outcome resulted in a decrease of 0.3% compared with August 2016 (primary –0.6%). Price-adjusted new orders without major orders in manufacturing had increased in October 2016 a seasonally and working-day adjusted 4.3% on September 2016. In October 2016, domestic orders increased by 6.3% and foreign orders by 3.9% on the previous month.

Today on Wednesday, the investors are recommended to monitor the following events:

EUR

  • German Industrial Production m/m
  • French Trade Balance
  • Italian Quarterly Unemployment Rate

USD

  • JOLTS Job Openings
  • Crude Oil Inventories

Technical Overview

EURUSD continues to trade below a strong resistance level of 1.07990 and holding above a significant support level of 1.050 while trading in a selling range with almost the same RSI value has shifted downward at 48 from 51. Moreover, the pair has a resistance around 1.08110 and 1.0870, while the intra-day support prevails at 1.0690 and 1.0505.

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