EURUSD 08-05-2018 Intra-day analysis.

Daily Forex Market Preview, 08/05/2018

The markets were seen trading subdued on the day with price action staying rather flat. Economic data on Monday was quiet with only the Fed member speeches from Bostic and Barkin.

The Eurozone Sentix investor confidence was seen easing back for the fourth consecutive month, while the German factory orders report showed another month of decline at 0.9%. The previous month’s data was seen to be revised higher.

Looking ahead, the economic calendar for the day will see the release of the Swiss unemployment figures. Forecasts show no change to the Swiss unemployment rate which is expected to remain steady at 2.9%.

The German industrial production figures will be coming out later today with expectations pointing to a 0.8% increase on the month following a 1.6% decline the month before. German trade balance numbers are also expected during the day.

The Fed Chair, Jerome Powell is expected to speak early in the day. Powell will be speaking at a conference in Zurich. His speaking engagement comes a week after the Federal Reserve left interest rates unchanged.

Australia’s annual budget release is expected later although it is unlikely to be a major market moving event. In the U.S. President Trump announced that his administration would announce its decision whether or not to pull out of the Iran nuclear deal. Oil prices have risen steadily in anticipation of a U.S. pullout from the deal.

EURUSD 08-05-2018 Intra-day analysis

EURUSD (1.1931): The EURUSD was seen continuing to trade weaker but with price action trading in the support zone of 1.1960 – 1.1920, we could expect to see a reversal at this level. In the event that price action breaks below this support level, then we expect the declines to push lower toward the next main support level at 1.1730. Alternately, with the Stochastics currently showing a higher low against the lower low in price, we could expect a rebound. This can be confirmed on a daily close above 1.1954 level.