Daily Forex Market Preview, 12/02/2018
The U.S. dollar managed to hold its ground but, was trading mixed on Friday. The EURUSD posted declines into the close while the equity markets saw another volatile day. On the economic front, data from the UK showed that manufacturing production rose 0.3% on the month as expected. The previous month’s figures were revised down from 0.2% from the initially reported 0.4% increase. Construction output seemed to be better, rising by 1.6%, which beat estimates of a 0.7% increase while industrial production declined 1.3% on the month.
Canada’s monthly employment figures surprised the public to the downside. The economy was seen losing 88,000 jobs in January with the unemployment rate rising to 5.9% up from 5.7% in December.
Looking ahead, the economic calendar is relatively quiet today with no major releases expected. Switzerland will be releasing its monthly inflation data. Forecasts predict a 0.1% decline in consumer prices. Later in the day, Japan’s producer price index data will be coming up with forecasts showing a slower pace of growth at 2.7%.
EURUSD 12-02-2018 Intra-day analysis
EURUSD (1.2286): The EURUSD closed on Friday with the doji pattern. The prices were trading within the range from Thursday. The doji pattern comes after the EURUSD fell sharply through the week. A reversal off this doji pattern could potentially signal a short-term retracement in the EURUSD. To the upside, the gains are likely to be limited to the 1.2363 level which previously served as support. Establishing resistance at this level could signal the end of the correction with prices likely to correct lower. Support at 1.2090 will remain the initial target for the decline in the EURUSD.