EURUSD Forecast | Daily Technical Analysis for January 4, 2017
EURUSD Technical Overview
Yesterday Close 1.0406
Today Open 1.0406
Day’s Range 1.0390 – 1.0424
52 wk Range 1.0341 – 1.1616
1-Year Return – 4.04%
EURUSD Technical Support and Resistance
Our Possible trading range for today 1.0390 – 1.0424
EURUSD forecast: EURUSD pair possibly will find its immediate support at 1.0354. If, market breaks the first support then it will go for the following support to test. Following supports are 1.0317 and 1.0259.
On the other side, we found immediate resistance at 1.0470 from our EURUSD technical analysis. If, market breaks the primary resistance level then, for sure market will go for the new resistance level 1.0507 and 1.0565.
EURUSD Fundamental Analysis
We had the Manufacturing PMI data from the US yesterday and that came in at a healthy 54.7 which continued the trend of good economic data coming out of the US for the past couple of months. We had mentioned that continuing good data from the US will increase the chances of a quick hike from the Fed in 2017 and this would also mean that the markets will start pricing in the hikes quicker as well. This is what we saw yesterday as the EURUSD pair crashed through 1.0400 and even broke through the December lows for a brief period. It did recover as we moved closer to the London fix and it sits just around 1.0400 as of writing this. We expect the strength of the dollar to continue to dominate the markets for today as well and this could bring yesterdays lows into the picture. A clear break of this low could push the EURUSD pair below 1.0300.
We do not have any major news from the US or the Eurozone for today. Except FOMC meetings. so the markets are likely to continue to be dominated by the flows and also by the positioning by the returning traders and also positioning ahead of the key economic reports that are scheduled to be released over the past couple of days. Traders will be viewing any decent bounce in the EURUSD pair as an opportunity to go short.
Along with eurusd technical analysis forecast, keep eye on the following economical events.
Upcoming Economic News in EUROPE: (GMT +2)
1. 10:00am EUR Spanish Unemployment Change
2. 10:15am EUR Spanish Services PMI
3. 10:45am EUR Italian Services PMI
4. 10:50am EUR French Final Services PMI
5. 10:55am EUR German Final Services PMI
6. 11:00am EUR Final Services PMI
7. 12:00pm EUR CPI Flash Estimate y/y
i. EUR Core CPI Flash Estimate y/y
ii. EUR Italian Prelim CPI m/m
8. 5:30pm USD Crude Oil Inventories
9. All Day USD Total Vehicle Sales