Daily Market Analysis Report
Fri, 23 Dec 2016 04:22 AM GMT
Author: Senior Forex Analyst, Arslan Ali Butt
- Daily Trading Range:
- 1.0550 – 1.0250
- Support & Resistance Levels:
- R3: 1.0612
Pivot Point: 1.0439
- Trading Recommendation:
- Sell Below: 1.0470
1st @ 1.0400
Stop Loss @ 1.0490
EURUSD organized a fast, brief rally to the 1.0500 regions, yet neglected to recover the mental level and pulled back in the course of the most recent hours. EURUSD achieved a high of 1.0499 on the back of weaker-than-anticipated US consumer income/spending information, yet rapidly lost steam and surrendered over a large portion of a penny to the 1.0435 regions. At the time of preparing, the pair is exchanging at 1.0443, still 0.21% over its opening price.
As reported by the Federal Statistical Office (Destatis), the index of import prices increased by 0.3% in November 2016 compared with the corresponding month of the preceding year. This was the first increase of a yearly rate of change since November 2012 (+1.0%). In October and in September 2016 the annual rates of change were –0.6% and –1.8%, respectively. From October to November 2016 the index rose by 0.7%. The index of import prices, excluding crude oil and mineral oil products, increased by 0.4% compared with the level of a year earlier. The index of export prices increased by 0.3% in November 2016 compared with the corresponding.
Today on Friday, the investors are recommended to monitor the following events:
- GfK German Consumer Climate
- French Consumer Spending m/m
- New Home Sales
- Revised UoM Consumer Sentiment
- Revised UoM Inflation Expectations
Technically, on Thursday the EURUSD continued to trade bullish in earlier Asian Sessions and fell on the US economic figures. 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 51 from 43. Moreover, the pair has a resistance around 1.0566 and 1.0665, while the intra-day support prevails at 1.0391 and 1.0265.