EURUSD 2017-12-07 Intra-day analysis

Daily Forex Market Preview, 07/12/2017

It was a busy day for the markets as the economic calendar was packed with key economic releases. Data from ADP showed that private payrolls in the U.S. rose by 190k for the month of November. This was higher than the forecasts of 189k. No revisions were made to previous month’s print which was at 235k.

The Bank of Canada held the overnight rate steady at 1.0%. However, the BoC’s dovish tone dampened expectations of future rate hikes. This sent the Canadian dollar weaker on the day.

Oil prices were also weaker despite the weekly inventory report showing a larger than expected draw in U.S. stockpiles. Crude oil futures fell by 2.9% on the day to close at $55.96 a barrel. This data showed that U.S. crude oil production increased by 25,000 barrels per day to 9.71 million barrels per day.

Looking ahead, the economic calendar is relatively light today. The Eurozone’s revised GDP data is due to show an unchanged quarterly growth rate of 0.6% while Canada’s Ivey PMI numbers are due to come out later. The ECB President Mario Draghi is scheduled to speak later during the day.

EURUSD intra-day analysis

EURUSD (1.1803): The euro currency closed on a bearish note yesterday extending declines for two consecutive days. With the currency closing below the 1.1843 – 1.1822 level of support/resistance, we expect to see further declines. Any gains are likely to be limited to the resistance level mentioned. To the downside, the declines could be seen pushing the euro towards the 1.1710 level of support. In the event that EURUSD manages to close back above the resistance level, we could expect to see the bullish bias taking over. The euro could be seen attempting to post gains towards the 1.1920 level of resistance.