Intraday Technical Analysis 4 December

December 4, 2018

By Orbex

Data from the Eurozone showed that final manufacturing PMI grew to 51.8 in November. This was a slight increase from 51.6 in the previous month. The UK’s manufacturing PMI was up to 53.1 in November, up from 51.1 in October.

The ISM manufacturing PMI was higher than forecast, rising to 59.3 on the index. This was also better than the October’s print which saw the index falling to 57.7. The increase in the ISM manufacturing came as production index grew to 60.6 on the month compared to October 59.9. New orders index rose to 62.1, advancing from 57.4.

Construction data, however, came out weaker than forecasts. Private construction was seen falling 0.4% in October compared to the previous month. On a yearly basis, construction spending grew 3.9%.

The economic schedule for today is relatively quiet in comparison to the week. The RBA held its monetary policy meeting earlier today. The central bank, as widely expected left the interest rates unchanged at 1.50%.


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Looking ahead, the European trading session is quiet with only the release of the Swiss inflation report. Headline consumer prices are forecast to fall by 0.1%. This follows a 0.2% increase the month before.

The Bank of England Governor, Mark Carney will be speaking later in the afternoon. The UK’s construction PMI will be out today. Forecasts point to construction activity easing to 52.5 on the index from 53.2 in October.

Producer prices data from the Eurozone are out next, and factory gate inflation is expected to remain steady, rising by 0.5% on the month. The NY trading session will see Fed members Williams and BoE MPC member Vlieghe speaking.

EURUSD intraday analysis

eurusd

EURUSD (1.1375): The EURUSD closed with a doji pattern yesterday, and price action seems supported above the 1.1315 – 1.1300 level. As long as this level holds, the EURUSD could attempt to test the upper range at 1.1435 level. A breakout from this level is needed for the EURUSD to post further gains. However, in the short term, we expect the common currency to maintain a sideways holding pattern.

GBPUSD intraday analysis

gbpusd

GBPUSD (1.2741): The GBPUSD currency pair continues to consolidate near the support area of 1.2747 region. Price action slipped below this level but posted a quick reversal. In the short term, the GBPUSD could be seen holding on the ranging pattern with an increased risk of a test to the 1.2683 level of lower support. To the upside, price action needs to break out from the falling trend line to confirm any upside in price.

XAUUSD intraday analysis

xauusd

XAUUSD (1236.73): Gold advanced higher on the day on Monday as price action was seen inching closer to the 1242.25 level of resistance and the next target. In the near term, support is seen at 1227.10 which could be tested on a dip. Establishing support at this level will signal further gains to the upside. Alternately, failure to hold the declines at 1227.10 could potentially risk gold to erase the gains and inch lower to the support level at 1217.00.

By Orbex