Market Research and Analysis

Daily Market Analysis Report

Wed, 14 Dec 2016 03:43 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.0750 – 1.0500
  • Support & Resistance Levels:
  • R3: 1.073
    R2: 1.0682
    R1: 1.0652
    Pivot Point: 1.0604
    S1: 1.0556
    S2: 1.0526
    S3: 1.0478
  • Trading Recommendation:
  • Buy Above: 1.0665
    Take Profit:
    1st @ 1.0715
    Stop Loss @ 1.0630


EURUSD pair extended its weekly advance by a few pips, reaching 1.0668   before settling around 1.0620, presenting a neutral stance in the 4 hours chart, the RSI indicator heads modestly lower around 48, while the Momentum indicator loses upward strength above its mid-line. The price is stuck around a horizontal 100 SMA, and a few pips above the 20 SMA, but more relevant, barely 120 pips away from its year low. A hawkish FED can send the pair to fresh ones, down to 1.0460, 2015 low.

Fundamental Overview

The ZEW Indicator of Economic Sentiment for Germany has remained unchanged at a level of 13.8 points (long-term average: 24.0 points) in December 2016. “The ZEW Indicator of Economic Sentiment remains at the same level; however, given the fact that the evaluation of the current situation has once again recorded an improvement, the overall assessment is quite positive. This is supported by the recently published positive GDP growth figures for the euro area in the third quarter. Moreover, consumer prices in Germany were 0.8% higher in November 2016 than in November 2015. This means that the inflation remains at the two-year-high reached in the previous month. Compared with October 2016, the consumer price index rose by 0.1% in November 2016.

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


  • French Final CPI m/m
  • Industrial Production m/m


  • Core Retail Sales m/m
  • PPI m/m
  • Retail Sales m/m
  • Core PPI m/m
  • Capacity Utilization Rate
  • Industrial Production m/m
  • Business Inventories m/m

Technical Overview

Technically, the EURUSD is holding below a 38.2% Fibonacci level of 1.06540, edged higher after consolidating just above a significant support level of 1.0500. RSI value has a slight shift upward from 35 to 49, wait for the crossover. Requote” The pair is pulling back slightly to complete a retracement at 1.0608 and 1.0654”. Moreover, the pair has a resistance around 1.0695 and 1.0790, while the intra-day support prevails at 1.0505.

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Read our General Risk Disclosure.