EURUSD 04-05-2018 Intra-day analysis.

Daily Forex Market Preview, 04/05/2018

The U.S. dollar was seen holding ground on Thursday albeit trading mixed. Economic data on the day included the UK’s services PMI. Data showed that services sector activity increased modestly from March’s 51.7 to 52.8.

In the Eurozone, the flash inflation estimates showed that headline inflation rebounded to 1.2% but this was below forecasts of a 1.3% increase. Core inflation rate eased further to 0.7%.

The ISM’s non-manufacturing PMI data showed that the index eased to 56.8 missing forecasts and down from March’s reading of 58.8

Looking ahead, the economic data for the day will see the nonfarm payrolls report standing out. Median forecast point to the U.S. unemployment rate potentially easing to 4.0% in the month of April. The number of jobs added during the month is expected to rebound from March’s 103k to 189k. Wage growth which also remains a key component is expected to show a 0.2% increase on a month over month basis. A better than expected report could potentially renew hawkish bets on the U.S. dollar.

Elsewhere, the Canadian Ivey PMI data is due to be released today. A number of Fed speeches are also lined up including Dudley, Williams and Quarles.

EURUSD 04-05-2018 Intra-day analysis

EURUSD (1.1987): The EURUSD was seen closing weaker on the day as price action fell to a fresh 4-month low at 1.1954. The decline to this support level coincided with the support level that was established in late November 2017. Price action has remained slightly volatile after slipping to this level. In the near term, we expect to see the EURUSD consolidate around this level of support before possibly posting a rebound. The resistance level at 1.2090 – 1.2070 remains as a key level to the upside and therefore, the EURUSD could remain range bound within these levels.