Intraday Technical Analysis 6 December

December 6, 2018

By Orbex

Trading in the U.S. markets were subdued as equities, and some other exchanges were closed due to the National day of mourning for the former President George H. W. Bush.

In the Eurozone, the services PMI showed a modest increase in activity as the index rose to 53.4 beating estimates of 53.1 and advancing from the month before. Retail sales data also came out better, rising 0.3% on the month although previous month’s report was revised lower to show a 0.5% decline.

The Bank of Canada held its interest rates unchanged at 1.75%. The Central Bank flagged concerns about the trade which sent the Canadian Dollar to post losses on the day.

Earlier in the day, Australia’s retail sales showed a 0.3% increase for November. The data matched estimates but previous month’s retail sales numbers were revised lower to show a 0.1% increase.


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The European trading session will start with the German factory orders which are forecast to shrink 0.4% in November. This follows a 0.3% increase the month before.

The NY trading session will see the release of the private payrolls report from ADP. Forecasts point to private payrolls rising 196k in November. This follows a 227k increase the month before. The Bank of Canada governor, Stephen Poloz is due to speak later in the afternoon.

ISM’s non-manufacturing PMI is due later and is forecast to show an increase to 59.2 for November. This marks a modest slowdown from 60.3 in the previous month. Factory orders in the U.S. are set to fall 1.9% on the month.

EURUSD intraday analysis

eurusd

EURUSD (1.1343): The EURUSD maintains a sideways range with price action turning flat for the past few daily sessions. The common currency touched down to the support level at 1.1315 – 1.1300 briefly before pulling back higher. However, with the strong consolidation, we expect that the support could eventually pave the way for further declines in the near term. A strong close below 1.1315 – 1.1300 could signal a drop down to 1.1220 level to re-establish support. To the upside, the trend line which is currently being followed needs to be breached to confirm the upside.

GBPUSD intraday analysis

gbpusd

GBPUSD (1.2723): The GBPUSD currency pair is seen now trading within the support area of 1.2747 – 1.2683 region. We expect price action to maintain the range within this level as price fails to breakout from the upside. Given that price has been consolidating, a break down from the current support area could potentially trigger further losses to the downside. A close below 1.2683 could trigger the descending triangle pattern. This puts the minimum downside target to 1.2500.

XAUUSD intraday analysis

xauusd

XAUUSD (1240.08): Gold was seen recovering from the modest declines posted on Tuesday, Price action reversed those losses and is looking to retest the resistance level at 1242.25 level. Establishing resistance with a firm retest could pave the way for a downside correction in prices. The lower support at 1227.10 remains the prime target. A reversal around this level could keep gold prices turning flat and trading within the said levels. If gold prices posted further declines, we anticipate the price to test the lower support at 1217.00.

By Orbex