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.
GBPUSD intra-day analysis
GBPUSD (1.3985): The GBPUSD closed with a doji yesterday but price action remains biased to the downside, targeting 1.3902. For the moment, the consolidation taking place at the current levels could indicate further declines on a break down below 1.3902. In the event that GBPUSD breaks below this support level, we expect to see the declines being extended down to 1.3611 – 1.3589 level of support where price action is yet to retest the support at this zone. To the upside, the gains are capped near the previous resistance level of 1.4127.