On Monday, the 3rd of December, the event calendar is quite rich in important data releases. During the London session, Switzerland will post Retail Sales data, the UK, Germany, France, Spain and the Eurozone will present PMI Manufacturing data. During the NY session, the US and Canada will present the manufacturing data as well. Moreover, there are some speeches scheduled for today from FOMC Member Randal K. Quarles, John Williams, Lael Brainard and Rober Kaplan.
EUR/USD analysis for 03/12/2018:
The PMI Manufacturing data from Germany are expected to be released at 08:55 am GMT and the market participants expect no change in the data. The same situation applies to the whole Eurozone PMI data as well.
Gauge for the overall performance of the German manufacturing sector. Through asking executives about sales and employment outlook, the survey strives to provide useful information about the business climate that can lead to developments in employment, output and consumption. The PMI survey results are the result of interviews with business executives. Manufacturing is an important sector in Germany, which is why changes in Manufacturing PMI can provide a good indicator of the overall economic condition in Germany as well as Euro-zone. However, despite the timeliness of the report, Manufacturing PMI is not a big market mover. The survey results are quantified into the index where 0 represents long-term manufacturing business conditions. The headline figure is expressed in percentage change.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has broken below the short term golden trendline support, but then suddenly bounced back on towards the level of 1.1402. The current market conditions are now neutral, but the momentum is slightly positive. The key short-term technical resistance is seen at the level of 1.1402. The nearest technical supports are seen at the levels of 1.1325 and 1.1301. The larger time frame trend remains down.