The U.S. dollar was seen maintaining the gains yesterday. Economic data was mostly quiet over the week. The U.S. crude oil inventories report showed a 2.2 million barrels per day increase beating forecasts of 1.6 million draw down seen from the week before.
Looking ahead, the economic data today will see the ECB’s monetary policy meeting. The central bank is expected to keep rates and QE unchanged at today’s meeting. The markets are expecting the ECB to maintain a dovish tone at today’s meeting with the recent slowdown in economic activity as well as subdued inflation.
Data from the U.S. will see the release of the durable goods orders report. Economists are forecasting that core durable goods orders to rise 0.5% on the month. This would offset the 1.0% decline seen previously. Headline durable goods orders are forecast to rise 1.6% on the month. The increase is expected to rise at a slower pace of 3.0% seen in the previous month.
EURUSD intra-day analysis
EURUSD (1.2177): The EURUSD currency pair was seen continuing to post losses yesterday with price seen testing the lower support level of of 1.2180. The losses came amid a brief rally earlier when the EURUSD tested the upper bounds at 1.2250 as noted previously. Price is seen currently consolidating near the 1.2180 level. An intraday rebound toward 1.2250 is expected as the markets head into the ECB meeting. With the upper resistance level at 1.2300 still yet to be tested for resistance, a breakout above 1.2250 could signal a stronger correction to the upside.
