Forex Market: EUR/USD daily trading forecast

Friday’s trade saw EUR/USD within the range of 1.2169-1.2225. The pair closed at 1.2179, losing 0.26% on a daily basis. EUR/USD has plunged 11% during the second six months of the year.

At 8:00 GMT today EUR/USD was up 0.02% for the day to trade at 1.2179. The pair touched a daily high at 1.2202 at 5:00 GMT.

Fundamentals

Euro zone

Greek Ballot

Greeces Prime Minister Antonis Samaras is to make a third and final attempt to get his candidate for president confirmed today. Members of parliament are expected to cast their ballots at noon in Athens, as Samaras aims at 180 votes in the 300-seat chamber in order to appoint Stavros Dimas, his nominee, as head of state. In case the election of Dimas fails, this will be the cause of a general election in late January or early February. Greeces bailout, amounting to EUR 240 billion ($293 billion), expires several weeks before that.

“The Greek vote should be something to watch out as a risk factor,” said Junichi Ishikawa, an analyst at IG Markets in Tokyo, cited by Bloomberg. “Improving fundamentals in the U.S. and speculation of fresh monetary easing by the ECB could lift global stock markets further, and if that is the case, the dollar could aim toward this year’s high against the yen before 2014 ends”.

Italian Consumer Confidence Index

Confidence among consumers in Italy probably remained almost unchanged in December, with the respective gauge coming in at a reading of 100.5, according to expectations, up from 100.2 in November. The latter has been the lowest level of confidence since February, when the index was reported at 97.7. As an indicator, the consumer confidence index reveals what consumers’ financial prospects and willingness to spend are. Higher confidence is usually related to a sound financial state and a greater willingness to make purchases, including large-ticket ones, and vice versa. Therefore, in case the gauge showed a larger improvement than anticipated in December, this would provide a limited support to the common currency. The Istat is to release the official data at 9:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2191. In case EUR/USD manages to breach the first resistance level at 1.2213, it will probably continue up to test 1.2247. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2269.

If EUR/USD manages to breach the first key support at 1.2157, it will probably continue to slide and test 1.2135. With this second key support broken, the movement to the downside will probably continue to 1.2101.

The mid-Pivot levels for today are as follows: M1 – 1.2118, M2 – 1.2146, M3 – 1.2174, M4 – 1.2202, M5 – 1.2230, M6 – 1.2258.

In weekly terms, the central pivot point is at 1.2205. The three key resistance levels are as follows: R1 – 1.2245, R2 – 1.2313, R3 – 1.2353. The three key support levels are: S1 – 1.2137, S2 – 1.2097, S3 – 1.2029.