Daily Forex Market Preview, 10/04/2018
The U.S. dollar was seen extending the declines from last Friday. The day was relatively quiet but news of the U.S. imposing fresh sanctions on key Russian industries and personnel caused a flutter.
The Russian ruble was seen weakening strongly on the freshly announced sanctions. In the Eurozone, German trade balance figures were weak as both imports and exports fell sharply during the month in February.
This brought down the German trade surplus only slightly. The euro was however unchanged on the news.
The BoC’s business outlook survey data released yesterday showed an overall improvement as the data reflected positive sentiment for the first quarter of 2018. Firms were optimistic that sales would increase in the near term.
Looking ahead, the economic data for the day will see the French industrial production numbers. BoE Member and economist Andy Haldane will be speaking during the day. In the U.S. trading session, the producer prices index data will be coming out. Economists forecast that producer prices rose at a somewhat mixed pace during March.
XAUUSD 10-04-2018 Intra-day analysis
XAUUSD (1334.26): Gold prices continue to remain range bound trading within the 1336 resistance and 1328 – 1325 level of support. This sideways range could potentially give way for a near term breakout that could establish the short term direction in price. To the upside, above 1336 level, we expect to see further gains that could push gold prices to the 1357 handle. To the downside, a breakout below the support level could signal a decline to the 1307 handle. The bearish divergence on the charts signals that gold prices could be retesting the lower support.