EURUSD 09-05-2018 Intra-day analysis.
Trump withdraws from Iran deal. RBNZ meeting in focus
Daily Forex Market Preview, 09/05/2018
The newswires were dominated by Trump’s decision on Iran nuclear deal which saw oil prices turning volatile on the day. The Trump administration announced that they would be pulling out the Iran nuclear deal. Oil prices reacted little to the news with price already pushing higher in anticipation of the outcome.
On the economic front, retail sales report from Australia showed a flat print and missed estimates of a 0.2% increase. Data from the Eurozone showed a modest improvement in German industrial orders which increased 1.0% compared to estimates of 0.8%. The German trade balance figures are ticked higher to 22 billion compared to estimates of 19.9 billion.
Looking ahead, the U.S. Producer prices index report will be coming out. Economists’ polled expect headline PPI to rise 0.2% on the month, a slower pace compared to 0.3% increase previously. Core PPI is also forecast to rise 0.2% on the month.
Later in the day, the RBNZ monetary policy meeting will be a key event to watch for. However, no change to monetary policy is expected at today’s meeting.
EURUSD 09-05-2018 Intra-day analysis
EURUSD (1.1854): The EURUSD extended declines as price action closed below the support level of 1.1920. The declines below this level indicate further losses that could send the EURUSD lower toward the next main support level at 1.1730. Any rebound in prices are likely to be limited to the previous local highs although the main resistance level at 1.1954 will be a key level that could be tested in the near term. As long as the EURUSD remains below 1.1954, we expect to see the downside momentum prevailing.
