Daily Forex Market Preview, 21/02/2018
The U.S. dollar continued to rise higher on Tuesday as the U.S. markets opened after a long weekend. Economic data was sparse for the most part. The USD managed to remain strong as investors focused on the upcoming FOMC meeting minutes.
In the Eurozone, the ZEW economic sentiment survey showed that German economic sentiment rose to 17.8, beating estimates of 16.0 while the Eurozone economic sentiment was also higher at 29.3. However, both the indexes were weaker compared to the previous month.
Looking ahead, the FOMC meeting minutes today will stand out amid a somewhat busy day ahead. Data from the Eurozone will cover the flash manufacturing and services PMI figures for February.
In the UK, the monthly jobs data will be coming out. No major changes are expected as economists forecast that the UK’s unemployment rate will remain unchanged at 4.3%. Wage growth is also expected to remain broadly stable.
EURUSD intra-day analysis
EURUSD (1.2331): The EURUSD continued to post declines for the third consecutive day yesterday. However, price action is limited within the range established in the past month. Currently, EURUSD is seen consolidating near the support level of 1.2363 – 1.2333 region. There is a potential for EURUSD to post a rebound of this level. This could send EURUSD back to test the minor resistance level at 1.2443. Alternately, if EURUSD breaks past the support level, the declines could see EURUSD falling to the 9 February lows of 1.2205 where support could be established. Further downside momentum could see EURUSD testing the major support level at 1.2090 – 1.2070.