Daily Forex Market Preview, 29/03/2018
The U.S. dollar was seen holding on to the gains from Tuesday. The positive sentiment kicked in after the final revised GDP showed a 3.1% increase on the fourth quarter. This was higher than the expectations of an increase of 2.7%. Later in the day, the pending home sales data showed a 3.1% increase on the month which once again beat estimates of 2.1%. Previous month’s data was revised to show a 5.0% decline on the month.
Looking ahead, the economic calendar for the day will see the release of UK’s current account data followed by the GDP figures for the fourth quarter of 2017. Economists are forecasting that the UK’s GDP expanded at a pace of 0.4% on the quarter, unchanged from the previous estimates.
Canada will also be releasing its monthly GDP numbers with expectations pointing to a 0.1% increase on a month over month basis. Data from the U.S. will see the release of the core PCE price index data. Forecasts point to a slower pace of increase at just 0.2% on the month. Personal spending and income data is expected to show a 0.2% increase and 0.4% increase respectively.
EURUSD 29-03-2018 Intra-day analysis
EURUSD (1.2326): The euro currency was seen giving up the gains for the second day as price fell to session lows of 1.2334 marking a three-day low. On the 4-hour chart, price action was seen slipping below 1.2363 which marked the breakout from the triangle pattern. Further declines could potentially invalidate the upside bias in price. In the near term, we expect a retest of 1.2363 level following which, if the resistance level holds, the euro could be seen posting stronger declines. Support is seen at 1.2180 which could be tested to the downside if the resistance level at 1.2363 holds up.