Daily Forex Market Preview, 16/04/2018
The U.S. dollar was seen trading mixed on Friday with lack of any clear fundamentals moving the markets. The overall theme as well as the risk appetite was somewhat mixed.
On the economic front, the Eurozone trade balance data released last week showed a moderate increase to 21 billion euro, up from 20.2 billion euro from the previous month. Germany’s final inflation data showed that consumer prices increased at a pace of 0.4% on the month.
Looking ahead, the economic data is relatively quiet with only the retail sales data from the U.S. expected today. Core retail sales is expected to rise 0.2% on the month while headline retail sales are forecast to rise 0.4%, offsetting the 0.1% decline from the previous month.
The news about the U.S. coalition forces strike over Syria is expected to create a standoff between the United States and Russia. This could potentially keep investors on the edge on escalating tensions between the two countries.
EURUSD 16-04-2018 Intra-day analysis
EURUSD (1.2334): The euro currency closed on Friday with price action subdued following last Thursday’s decline. The currency pair briefly fell close to the lower support at 1.2300 before posting a modest rebound. In the near term, the EURUSD is expected to remain supported above the 1.2300 level. However, a breakout to the downside below this level cannot be ruled out. We expect to see the EURUSD eventually post the declines back to 1.2250 level where support is yet to be established. To the upside, the currency must clear the resistance level of 1.2385 to post further gains.