EURUSD 10-05-2018 Intra-day analysis.

Daily Forex Market Preview, 10/05/2018

The U.S. dollar was seen maintaining the gains from the earlier part of the week. Investors digested news of the U.S. pulling out of the Iran nuclear deal with oil prices continuing to rise to fresh highs.

On the economic front, the RBNZ was seen holding interest rates steady at 1.75%. The central bank did not waver from its previous forward guidance and maintained that rates will remain supportive in the near term.

Looking ahead, the economic calendar for the day will be dominated by the Bank of England monetary policy meeting. The central bank is expected to hold the interest rates steady at this week’s meeting but there is potential to announce a next rate hike by August.

The manufacturing and industrial production figures from the UK will also be released today with forecasts pointing to a 0.2% decline in manufacturing production. The U.S. economic data will see the monthly inflation figures coming out. The median estimates show that consumer prices might have increased 0.3% on the month in April while core inflation rate is expected to rise 0.2%.

EURUSD 10-05-2018 Intra-day analysis

EURUSD (1.1863): The EURUSD currency pair closed with a spinning bottom pattern yesterday just after closing below the main support level of 1.1960 – 1.1920. The spinning bottom pattern signals a potential turning point in prices in case we see a bullish close on the day. However, with price below the support level, a convincing close above this level is required in order for price action to post a corrective move. To the upside, the EURUSD could be seen rising to the next main resistance level of 1.2200 level. To the downside, further declines could push the common currency down to 1.1730 where the next support resides.