Market Research and Analysis

Daily Market Analysis Report

Wed, 04 Jan 2017 08:41 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.0750 – 1.0300
  • Support & Resistance Levels:
  • R3: 1.0581
  • R2: 1.0525
  • R1: 1.049
  • Pivot Point: 1.0434
  • S1: 1.0378
  • S2: 1.0343
  • S3: 1.0287
  • Trading Recommendation:
  • Sell Below: 1.0366
  • Take Profit
  • 1st @ 1.0340
  • Stop Loss @ 1.0380

EURUSD

EURUSD plunged to trade at 1.0400 after falling more than 150 pips on Tuesday despite better economic figures released from Eurozone. EURUSD pair proceeds with its drop this Tuesday, taking after a prematurely ended endeavor to progress early Asia. As London kicks in taking after a long end of the week, the greenback is firmer no matter how you look at it, with the pair constraining the 1.0420 support. Stocks keep the positive tone, with Asian shares up, and European ones opening higher, driving the interest for high-yielding resources. The Euro is likely to remain highly volatile as the economic calendar is filled with many events.

4-jan-eur
Fundamental Overview

German unemployment extended its decline in December amid signs that growth in Europe’s largest economy accelerated at the end of last year. The number of people out of work fell by a seasonally adjusted 17,000 to 2.638 million, data from the Federal Labor Agency in Nuremberg showed on Tuesday. Economists in a Bloomberg survey forecast a drop of 5,000. The jobless rate remained unchanged at 6 percent, matching the lowest level since reunification. Germany’s economy expanded at a “significantly faster pace” in the fourth quarter, driven by improvements in industry and private consumption, according to the Bundesbank.

EUR

  • Spanish Unemployment Change
  • Spanish Services PMI
  • Italian Services PMI
  • French Final Services PMI
  • German Final Services PMI
  • Final Services PMI
  • CPI Flash Estimate y/y
  • Core CPI Flash Estimate y/y
  • Italian Prelim CPI m/m

USD

  • Total Vehicle Sales

Technical Overview

EURUSD plunged to trade at 1.0400 after falling more than 150 pips on Tuesday despite better economic figures released from Eurozone. The pair broke out of a good resistance level of 61.8% retracement in H1 a the 1.0430 level and rapidly went for 1.0652, but eventually managed to close below 38.2% extension level at 1.0560. The RSI value has shifted to 38 from 48 in H4. Moreover, the pair has a resistance around 1.0566 and 1.0665, while the intra-day support prevails at 1.0377 and 1.0340.

Risk Warning:

There is a substantial risk of loss in trading commodity futures, option and off-change foreign currency products.
Read our General Risk Disclosure.