Market Research and Analysis

Daily Market Analysis Report

Fri, 16 Dec 2016 03:59 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.0550 – 1.0250
  • Support & Resistance Levels:
  • R3: 1.0612
    R2: 1.0546
    R1: 1.0505
    Pivot Point: 1.0439
    S1: 1.0373
    S2: 1.0332
    S3: 1.0266
  • Trading Recommendation:
  • Sell Below: 1.0468
    Take Profit:
    1st @ 1.03785
    Stop Loss @ 1.0499

EURUSD

On Thursday, the EURUSD continued to trade sharply bearish and placed a low of 1.0365 later in New York sessions. The US Dollar kept getting stronger on the FED Fund Rate Hike to 0.75% by 0.25% bp as well as more hawkish policy meeting than expected. Fed expects to increase the interest rates 3 times in 2017, rather than 2 times. The pair’s overall fluctuation remained 173 pips with a high of 1.0538 and a low of 1.0365.

16-dec-eur
Fundamental Overview

December’s flash France PMI® data indicated private sector output rose at a sharper pace. Stronger growth was registered in both the manufacturing and service sectors, with the rate of expansion the most marked in the former. The Markit Flash France Composite Output Index, based on around 85% of normal monthly survey replies, registered 52.8, compared to November’s reading of 51.4. The latest reading pointed to a solid rate of growth that was the best in a year-and-a-half. Underpinning the expansion was a further rise in service sector activity, the sixth in as many months.

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

EUR

  • Italian Trade Balance
  • Final CPI y/y
  • Final Core CPI y/y
  • Trade Balance

USD

  • Building Permits
  • Housing Starts
  • TIC Long-Term Purchases

Technical Overview

Technically, the EURUSD maintained its sharp bearish momentum for the 2nd consecutive to trade around 1.0420. The pair formed a bearish engulfing, representing a strong sell coming ahead. It fell sharply and broke below a strong triple bottom support level of 1.0530. The RSI value has also slight lower sharply at 27 from to 42. Moreover, the pair has a resistance around 1.0566 and 1.0665, while the intra-day support prevails at 1.0391 and 1.0266.

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