Daily Forex Market Preview, 28/03/2018
The U.S. dollar was seen attempting to post a modest rebound on the day on Tuesday. The U.S. dollar index pulled back from the fresh monthly lows posted earlier on Monday. Economic data was sparse but the Richmond Fed manufacturing index report showed a decline in activity.
The Richmond Fed manufacturing index rose at a slower pace in March with new orders and employment indexes falling. The composite index slipped to 15, down from 28 in February. However, most of the firms surveyed were optimistic over the next six months.
The Conference Board’s consumer confidence index was also coming out weaker in March after rising to an 18-month high in February. For March, the consumer confidence index fell to 127.7 compared to 130.0 in February.
Data from the Eurozone covered the flash inflation estimates for Spain. Consumer prices were seen rising at a slower pace of 1.2% on the year ending March which was weaker than the estimates of 1.5%.
For the day ahead, the economic calendar will see the release of the housing price index from Nationwide for the UK. In the NY trading session, the final revised GDP for the fourth quarter of 2017 is forecast to show a revised print of 2.7%, slightly accelerating from 2.5% previously reported in the second estimate. Pending home sales data is expected to show a modest recovery, rising 0.5 million and reversing part of the declines from the previous month.
EURUSD 28-03-2018 Intra-day analysis
EURUSD (1.2417): The euro currency was seen briefly posting a fresh monthly high at 1.2476 on the day before giving up most of the gains. Price action was bearish following the strong gains from Monday. On the 4-hour chart, price action was seen drifting back to the breached resistance level at 1.2363. A retest of this level could confirm the support that could keep the EURUSD biased to the upside. However, with momentum easing, there is scope for the EURUSD to slip back below this level in the medium term and could enter back into the range that it maintained.