Market Research and Analysis

Daily Market Analysis Report

Tue, 20 Dec 2016 04:05 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:
  • (Still Active)
    Sell Below: 1.04688
    Take Profit:
    1st @ 1.03785
    Stop Loss @ 1.0499

EURUSD

EURUSD trades around 1.0410 and tested the 1.0450 resistance area and the 20-hour moving, after Yellen, it turned to the bearish. It fell to 1.0408, hitting a fresh daily low, slightly below previous lows. The intraday tone remains to support the downside as the US dollar remains strong in the market. The US Dollar Index is back at the 103.00 area, near 14-year highs while EURUSD pair consolidates at 1.0415.

20-dec-eur
Fundamental Overview

German business morale rose in December, a survey showed on Monday, hitting its highest level since February 2014 and supporting expectations that Europe’s largest economy will rebound in the fourth quarter. The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of some 7,000 firms, rose to 111.0 after from 110.4 in November. The December reading compared with a Reuters consensus forecast for a value of 110.7. The current conditions index rose to 116.6 from 115.6, also above expectations and the highest level since February 2012, while the expectations index only increased marginally to 105.6 from 105.5.

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

EUR

  • German PPI m/m
  • Current Account

USD

  • No Economic Event Expected

Technical Overview

Technical outlook of the EURUSD remained the same, as it edged slightly lower after maintaining its slight retracement The pair headed higher to complete the 38.2% retracement 1.0485. It fell sharply and broke below a strong triple bottom support level of 1.0530. The RSI value has shifted higher 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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