Daily Forex Market Preview, 20/02/2018
The U.S. dollar managed to hold on to the gains made from Friday as the U.S. markets were closed on Monday. Trading was broadly limited ahead of Wednesday’s FOMC meeting. With the USD posting some gains, most other major currencies were seen easing back, albeit only slightly.
The Bank of England Governor, Mark Carney was speaking at an event yesterday, but he did not touch upon the monetary policy of the central bank.
Looking ahead, the economic calendar today will see the release of the German producer price index. Economists forecast that producer prices might have increased 0.3% on the month. The ZEW economic sentiment for Germany and the Eurozone will be coming out later. Both measures are expected to show moderation following the previous month’s increase. Data from the U.S. is scarce with the NY trading session limited to the Eurozone consumer confidence data.
EURUSD intra-day analysis
EURUSD (1.2387): The EURUSD was seen trading within a small range yesterday but price action managed to close on a bearish note. With price now trading close to the support level established around 1.2363 – 1.2330, we expect to see a modest rebound in the near term. The minor breached support level at 1.2443 could now turn to resistance on a rebound. A break down below 1.2330 is required in order for EURUSD to post further declines in the medium term. In the event that the currency pair closes above 1.2443 on a daily basis, we could expect to see price continuing to consolidate above the mentioned support level.