Daily Forex Market Preview, 27/12/2017
The markets were relatively quiet yesterday with most of Europe closed while the economic data from the U.S. were scant. The S&P/CS housing price index data rose 6.4%, beating estimates of 6.3%. However, the Richmond Fed manufacturing index showed a decline as the index fell to 20, down from 30 and below estimates of 22.
Looking ahead, the economic calendar today will see the release of the U.S. conference board’s consumer confidence data. Economists expect consumer confidence to slip to 128.2 following the previous month’s increase to 129.5. This is later followed by pending home sales data which is expected to post a 0.4% decline after rising 3.5% previously.
EURUSD intra-day analysis
EURUSD (1.1871): The EURUSD closed with a doji candlestick pattern on the daily session yesterday. Price action was seen consolidating above the 1.1843 – 1.1822 level of support which indicates further upside in price. On the 4-hour chart, the EURUSD is likely to break the consolidation to the upside with the potential bull flag pattern. Immediate resistance at 1.1920 is likely to be the near term upside target in price. Alternately, in the event that EURUSD fails to break higher, we could expect price action to continue trading flat above the support level.