Forex Market: EUR/USD daily trading outlook

Yesterday’s trade saw EUR/USD within the range of 1.2273-1.2214. The pair closed at 1.2230, adding 0.04% on a daily basis.

At 9:50 GMT today EUR/USD was up 0.07% for the day to trade at 1.2238. The pair held in a daily range of 1.2221-1.2246.

Fundamentals

Eurozone

The National Institute for Statistics and Economic Studies (INSEE) reported that Gross Domestic Product in France grew by an annualized 0.4% in the third quarter, while quarter-on-quarter growth came in in line with expectations of 0.3%. Consumer spending rose more than expected in November, gaining 0.4% on a monthly basis compared to a 0.8% decline a month earlier. Producer prices slid 0.1% last month.

In Italy, retail sales were flat on a monthly basis in October, the National Institute of Statistics (Istat) reported, while dropping by an annualized 0.8%.

United States

The Commerce Departments Bureau of Economic Analysis is expected to report that economic growth in the US probably accelerated to a final annualized reading of 4.3% in the the third quarter, an upward revision from a preliminary estimate of 3.9%. Meanwhile, durable goods orders, which reflect the health of the country’s manufacturing sector, likely grew by 3.0% in November, while a core measure probably rebounded to 1.1%.

Personal income likely rose by 0.5% in November on a monthly basis, compared to 0.2% in October. If confirmed, this would match expectations for a 0.5% jump in personal spending, which also grew by 0.2% the preceding month.

In other reports, December consumer sentiment likely remained high but an inch lower, with the corresponding Thomson Reuters/University of Michigan index projected at 93.1 from 93.8 in November, while new home sales increased.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2239. In case EUR/USD manages to breach the first resistance level at 1.2264, it may continue up to test 1.2298. In case the second key resistance is broken, the pair could attempt to advance to 1.2323.

If EUR/USD manages to breach the first key support at 1.2205, it may extend its slide and test 1.2180. With this second key support broken, movement to the downside could continue to 1.2146.

The mid-Pivot levels for today are as follows: M1 – 1.2163, M2 – 1.2193, M3 – 1.2222, M4 – 1.2252, M5 – 1.2281, M6 – 1.2311.

In weekly terms, the central pivot point is at 1.2339. The three key resistance levels are as follows: R1 – 1.2460, R2 – 1.2691, R3 – 1.2812. The three key support levels are: S1 – 1.2108, S2 – 1.1987, S3 – 1.1756.