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3 December Forex daily review

Sergiy Zlyvko
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Dollar rolled down in order to continue growing, so the bears again took the market under control. Economic calendar for Wednesday is dense. In Europe today the data on service PMI and Eurozone GDP for the 3rd quarter will be published. In the U.S. session important data from the U.S. will be published. Day should turn same volatility as the last two days. We are predicting the strengthening of the U.S. dollar. The main scenario forwards to the return of DXY index to 80.90.

On Tuesday, the single currency in accordance with the forecast rolled up to 1.3570 level and at the close of trading in Europe, the bulls moved up to 1.3615. In the U.S. session before the meeting of the ECB, there were talks that the ECB will not cut interest rates at the current meeting.

NFP still perform key event, so after yesterday’s return of EURUSD rate we have thought that the market will remain until Thursday in the range 1.3525-1.3620. Now it is necessary to monitor the behavior of the price level around at 1.3555. Rates return to 1.3525 will tip the scales on the side of sellers. On the day service PMI and Eurozone GDP will be published. After the market reaction to strong manufacturing PMI, we do not even know what to expect from it after the release of service PMI data. According to the forecast it is expected that performance will coincide with the values of the previous month.

Tuesday GBPUSD rate from a minimum of 1.6340 recovered to the same level of 1.6435, which has been lost on Monday. The pair is currently trading at carrying lines of 1.6375. Pound is balanced on the market and in Europe swings may start. Pound is supported by positive statistics, which appeared in the previous days. At 11:30 GMT service PMI index in the UK is going to be published. According to the forecast it expected to decline, but given the previous news, it is better to prepare for a good performance. By the main scenario on Wednesday we are considering going back to 1.6440 with the maximum 1.6430. Another option is to form a triangle, which just completed by the announcement of the Bank of England decision.

After falling to 0.9055, AUDUSD exchange rate amid falling dollar rebounded to 0.9145 this morning and Australia’s GDP sent AUDUSD to a new low at 0.9045. Australia’s GDP for the third quarter was lower than predicted values. Current exchange rate is 0.9015. Australian dollar last five trading days shows high liberty. AUDUSD drops sharply on weak data amid falling dollar and also quickly recovers losses. After yesterday’s decline of the dollar, the situation remains uncertain. If the euro and the pound will not fall today, then AUDUSD quickly gets to 0.9115. But we are practicing the decline to 0.9025 at the end of the day.

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