Daily Forex Market Preview, 06/03/2018
The euro currency was seen muted to the outcome of the Italian elections which showed rising support for the anti-establishment parties while also resulting in a hung parliament. The various parties, led by the 5 Star Movement is expected to start coalition talks.
On the economic front, the UK’s services PMI data improved, rising to 54.5 in February as the data beat estimates of 53.3 and gained from January’s 53.0. In the Eurozone, retail sales data showed a 0.1% decline which was below estimates of a 0.3% increase.
The non-manufacturing PMI from ISM showed a flat print, as the index registered a print of 55.9, which matched estimates and was unchanged from the previous month’s print.
For the day ahead, the economic calendar today will feature comments from NY Fed President; William Dudley followed the U.S. factory orders. Later in the day, the Bank of England’s chief economists, Andy Haldane will be speaking. Following the RBA’s decision earlier today, the RBA Governor Lowe is expected to speak later in the day.
EURUSD 06-03-2018 Intra-day analysis
EURUSD (1.2349): The EURUSD was seen edging posting gains on the day as the common currency brushed aside the uncertainty from the Italian elections. Price action was seen recovering back to the familiar resistance level of 1.2365 – 1.2330. A close above this level could potentially signal a shift in the bias to the upside and could also invalidate the bearish flag pattern which is already showing signs of invalidation. To the downside, EURUSD will be seen targeting 1.2260 level followed by a test of the lower support near 1.2090 – 1.2070 region.