Market Research and Analysis

Daily Market Analysis Report

Thu, 29 Dec 2016 05:09 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 0. 7450 – 0.7085
  • Support & Resistance Levels:
  • R3: 0.7284
    R2: 0.7261
    R1: 0.7247
    Pivot Point: 0.7224
    S1: 0.7201
    S2: 0.7187
    S3: 0.7164
  • Trading Recommendation:
  • Sell Below: 0.7225
    Take Profit:
    1st @ 0.7165
    Stop Loss @ 0.7245

AUDUSD

AUDUSD is trading at 0.7184, up 0.02% on the day, having posted a daily high at 0.7190 and low at 0.7168. AUDUSD is better bid with a test of the 20 SMA on the 1hr sticks on a weaker dollar in thin trade while investors and participants have taken the time out with positioned squared until 2017. 2017 is scheduled to bring us Trump and the potential of rate hikes from the Fed fueling a strong dollar theme for the start of the year. The RBA could also be one to watch given the recent downturn in the economy and the potential of a more dovish stance from the Central Bank and a divergence from the Fed supporting risk to the downside.

29-dec-aud
Fundamental Overview

The US Dollar remain slightly weak on Pending home sales, as pending home sales dipped in November to their lowest level in nearly a year as the brisk upswing in mortgage rates and not enough inventory dispirited some would-be buyers, according to the National Association of Realtors. Only the Northeast saw monthly and annual pending sales gains last month. The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 2.5 percent to 107.3 in November from 110.0 in October. After last month’s decrease in activity, the index is now 0.4 percent below last November (107.7) and is at its lowest reading since January (105.4).

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

AUD

  • No Economic Event Expected

USD

  • Unemployment Claims

Technical Overview

Technical scenarios of AUDUSD remained unchanged, as the pair trades around 0.7195, pushing back up from a support of 0.7165. Further, it also broker below a bullish trend line support level of 0.7490. The RSI value is unchanged at 33, representing a crossover in a pair. Today, the AUDUSD can find a resistance at 0.7240 and 0.7285, further the supports remains at 0.7140 and 0.7090.

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