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EURUSD 24-04-2018 Intra-day analysis.

USD maintains strong gains

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Daily Forex Market Preview, 24/04/2018

The U.S. dollar was seen posting strong gains on the day across the board. The gains came amid data from the Eurozone showing that manufacturing PMI might have eased to 56.0 in April. Services PMI data was seen registering a print of 55.0, slightly higher from 54.8 that was forecast.

The U.S. 10-year yields were seen rising close to the 3% threshold at 2.973%. This was the highest level in the 10-year yields since January of 2014.

Canadian wholesale sales were seen falling 0.8% on the month following a revised 0.3%increase the month before.

Looking ahead, the economic calendar for the day will see the release of the German Ifo business climate data. Economists forecast that after the Ifo business climate fell sharply, it is expected to pick up modestly to 104.7.

Data from the UK will see the release of the public sector net borrowing data which is expected to expand to 1.1 billion GBP. The data from the U.S. is rather limited with the CB consumer confidence data that is expected to show a decline to 126.0 compared to 127.7 previously. New home sales are expected to rise to 625k, up from 618k that was registered in the month before.

EURUSD 24-04-2018 Intra-day analysis

EURUSD (1.2213): The EURUSD currency pair was seen extending the declines for the third consecutive day. Price action was seen breaking below the 1.2241 level of support on the daily chart before reversing the declines, just a few pips off the 1.2180 level of support. In the near term, we expect price to retrace the losses to test the breached support level at 1.2250 on the 4-hour chart. Establishing resistance at this level could potentially keep EURUSD range bound within the 1.2180 level of support. Due to the fact that the EURUSD failed to test the previously breached support level at 1.2300, a breakout above 1.2250 will see the EURUSD testing this level for resistance.

 

 

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