Market Research and Analysis

Daily Market Analysis Report

Wed, 21 Dec 2016 04:01 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: 1.0439
    Take Profit:
    1st @ 1.03785
    Stop Loss @ 1.0460


EURUSD pair consolidates back underneath the 1.0400 level, with the dollar getting a support from an on-hold BOJ which helped the USD/JPY recoup exactly 100 pips overnight. Some positive figures originating from Germany couldn’t help the pair, as in November the record of maker costs for mechanical items ascended by 0.3% month to month premise, and by 0.1% contrasted when contrasted and the relating month of the former year.

Fundamental Overview

In October 2016 the current account of the euro area recorded a surplus of €28.4 billion. In the financial account, combined direct and portfolio investment recorded net acquisitions of assets of €83 billion and net incurrences of liabilities of €17 billion. The current account of the euro area recorded a surplus of €28.4 billion in October 2016. This reflected surpluses for goods (€26.0 billion), services (€9.3 billion) and primary income (€6.1 billion), which were partly offset by a deficit for secondary income (€13.0 billion). Furthermore, In November 2016 the index of producer prices for industrial products rose by 0.1% compared with the corresponding month of the preceding year. This was the first positive annual rate of change since June 2013 (+0.1%). In October 2016 the annual rate of change all over had been –0.4%. Compared with the preceding month October 2016 the overall index rose by 0.3% in November 2016 (0.7% in October and – 0.2% in September).

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


  • Belgian NBB Business Climate
  • Consumer Confidence


  • Existing Home Sales

Technical Overview

The technical outlook for the EURUSD remains bearish as it fell below 1.0400 on Tuesday. It edged slightly higher in earlier days of the week to maintain its retracement and to complete the 38.2% retracement 1.0485. The RSI value has shifted higher to 43. 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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