Forex Market: EUR/USD daily trading forecast

Yesterday’s trade saw EUR/USD within the range of 1.1539-1.1616. The daily low has also been the lowest level since November 11th 2003. The pair closed at 1.1550, losing 0.47% on a daily basis.

At 7:59 GMT today EUR/USD was up 0.02% for the day to trade at 1.1555. The pair touched a daily high at 1.1588 at 6:15 GMT.

Fundamentals

United States

Housing Starts, Building Permits

The number of housing starts in the United States probably increased to 1.040 million in December from the seasonally adjusted annual rate of 1.028 million during the prior month. Novembers figure has been influenced by a 5.4% drop in single-family homes. Single-family housing starts in November were at a rate of 677 000, or 5.4% below the revised figure of 716 000 in October. The November rate for units in buildings with five units or more was 340 000, according to data by the US Census Bureau.

Housing Starts represent a gauge to measure residential units, on which construction has already begun, every month. A start in construction is defined as the foundation laying of a building and it encompasses residential housing primarily.

The number of building permits in the country probably increased to 1.058 million in December from an unrevised annual level of 1.035 million in November. Octobers number of permits, or 1.080 million, has been the highest in six and a half years. Single-family authorizations in November were at a rate of 639 000, or 1.2% below the revised number of 647 000 in October. Authorizations of units in buildings with five units or more were at a rate of 367 000 in November, according to the report by the Census Bureau.

Building permits are permits, issued in order to allow excavation. An increase in the number of building permits and housing starts usually occurs a few months after mortgage rates in the country have been reduced. Permits are not required in all regions of the United States. Building permits, as an indicator, provide information regarding demand in the US housing market. In case a higher-than-anticipated figure is reported, this will certainly support the greenback. The official housing data is due out at 13:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1568. In case EUR/USD manages to breach the first resistance level at 1.1598, it will probably continue up to test 1.1645. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1675.

If EUR/USD manages to breach the first key support at 1.1521, it will probably continue to slide and test 1.1491. With this second key support broken, the movement to the downside will probably continue to 1.1444.

The mid-Pivot levels for today are as follows: M1 – 1.1468, M2 – 1.1506, M3 – 1.1545, M4 – 1.1583, M5 – 1.1622, M6 – 1.1660.

In weekly terms, the central pivot point is at 1.1633. The three key resistance levels are as follows: R1 – 1.1808, R2 – 1.2046, R3 – 1.2221. The three key support levels are: S1 – 1.1395, S2 – 1.1220, S3 – 1.0982.