Daily Forex Market Preview, 18/12/2017
The U.S. dollar closed on Friday with some gains although there were no major economic releases scheduled. The U.S. House is expected to vote on the tax bill on Tuesday which will potentially bring out the much anticipated tax cut proposals. The deal is expected to lift the sentiment in the U.S. dollar as the markets head into the holiday season.
Looking ahead, the economic calendar for today is light. The Eurozone final inflation figures will be coming out. Eurozone inflation is expected to remain steady at 1.5% while core inflation is expected to rise 0.9% as per the initial estimates.
The U.S. trading session is quiet with only the NAHB housing market data on the agenda.
EURUSD intra-day analysis
EURUSD (1.1761): The EURUSD gapped lower this morning, but price action was seen reversing the losses, filling up Friday’s closing gap. Price action remains supported above the 1.1730 level of support. This suggests a potential near term upside in prices. However, with the resistance level established near 1.1843 – 1.1822, the gains might be limited to this level. Only a break out above this resistance will signal any further gains that could see EURUSD rally towards 1.1920 level of resistance. To the downside, the next support is seen at 1.1710 – 1.1688 level where the declines could be halted.