Daily Forex Market Preview, 06/02/2018
The U.S. dollar was seen strengthening yesterday. Data from the U.S. showed that the ISM non-manufacturing PMI rose to 59.9 beating estimates of 56.5. January’s PMI data was also stronger than December’s print of 55.9.
In the UK, the services PMI came out slightly better than expected. The services sector activity rose to 54.7 in January, beating forecasts of 53.6 and accelerating slightly from December’s 53.9.
Earlier today, Australia’s retail sales figures showed a 0.5% decline on the month. This was a bigger than expected decline of 0.2%. However, revisions to previous month’s data showed an increase of 1.3%. The RBA’s monetary policy meeting was also held earlier today. The central bank kept interest rates unchanged at 1.50%.
Looking ahead, New Zealand’s unemployment data will be released later this evening. Estimates point to an increase in New Zealand’s unemployment rate at 4.7% while the quarterly employment change is expected to rise at a slower pace of 0.4%
EURUSD 06-02-2018 Intra-day analysis
EURUSD (1.2362): The EURUSD has confirmed the failed bullish flag pattern with price action failing to breakout above the 1.2497 level. The declines yesterday pushed the euro to the previous support formed at 1.2398. A break down below this level is required for the EURUSD to confirm the downside. Initial support is seen at 1.2281 which could be tested in the near term. Following this, EURUSD could be extending the declines to the lower support level at 1.2090 – 1.2070 area of support which is pending a retest.