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.
XAUUSD 29-03-2018 Intra-day analysis
XAUUSD (1327.59): Gold prices fell sharply yesterday testing the support level at 1328. With price now at support, we expect to see a modest rebound shaping up. The bullish divergence on the 4-hour chart signals a near term upside in price. Gold price will need to first retest the 1336 level where resistance could be formed. However, a breakout above this level will see gold prices testing the 1345 level once again. To the downside, a break below 1328 could signal a move lower to 1307.50.