EURUSD Forecast | Daily Technical Analysis for December 29, 2016
EURUSD Technical Overview
Prev. Close 1.0415
Day’s Range 1.0409 – 1.0440
52 wk Range 1.0350 – 1.1616
1-Year Return – 4.50%
EUR/USD Technical Support and Resistance
Our Possible trading range for today 1.0409 – 1.0440.
EURUSD forecast: EURUSD pair possibly will find its immediate support at 1.0377. If, market breaks the first support then it will go for the following support to test. Following supports are 1.0351 and 1.0307.
On the other side, we found immediate resistance at 1.0465 from our EURUSD technical analysis. If, market breaks the primary resistance level then, for sure market will go for the new resistance level 1.0491 and 1.0535.
Fundamental Analysis of EUR/USD
We saw a continuation of the ongoing dollar strength, a trend which had taken a brief hiatus during the Christmas holidays and this took the pair down to below 1.0400 and to as low as 1.0360 but the weak pending home sales helped to push the pair back above 1.0400.
The situation will become more clear as we enter into the new year and the traders begin to get back to their desks. The liquidity will be much stronger and the moves will also help us to identify trends and flows even better. But so far, there does not seem to be much stopping the onward march of the dollar and the Eurozone leaders are not making it any easier for themselves next year with the Brexit process set to begin and Germany also going into an election in the middle of 2017, an election that will be watched with interest to see how Merkel fares in it. A loss for her could be nothing short of catastrophic for the Euro as she has been the strongest leader in the Eurozone so far.
For today, we expect some more consolidation in the pair with a bullish bias as the markets digest the failure in the pending home sales data from the US.
Along with eurusd technical analysis forecast, keep eye on the following economical events.
Upcoming Important Economic News in EUROPE: (GMT +2)
- 11:00am EUR M3 Money Supply y/y
- EUR Private Loans y/y
- Tentative EUR Italian 10-y Bond Auction
- 3:30pm USD Unemployment Claims
- USD Goods Trade Balance
- USD Prelim Wholesale Inventories m/m
- 5:30pm USD Natural Gas Storage
- 6:00pm USD Crude Oil Inventories