Daily Forex Market Preview – 08/08/2018
The U.S. Dollar was trading mixed on Tuesday as the Euro posted a strong rebound. Economic data was sparse. Canada’s Ivey PMI report showed that the index increased to 61.8, missing estimates of 64.2 and down from the previous 63.1.
New Zealand’s inflation expectations for the quarter showed a 2.0% increase, rising at the same pace as before. The economic data for the remainder of the day will see the release of Canada’s building permits report. FOMC member Barkin is expected to speak later this evening.
Investors will be turning to the RBNZ later tonight for its monetary policy decision. The RBNZ is set to hold interest rates unchanged at today’s meeting.
EURUSD Intraday Analysis
EURUSD (1.1618): The EURUSD currency pair posted a strong rebound off the support level at 1.1540, to close at a two day high. Price action remains range bound within 1.1730 resistance and the said support level. On the 4-hour chart, the retracement is seen around the 38.2% level currently. Further gains could see price action rising toward 1.1664 marking a 61.8% retracement. We expect some moderation in the correction and as long as the support holds, the currency pair could be looking at changing the flat movement.
USDJPY Intraday Analysis
USDJPY (111.38): The USDJPY currency pair was seen consolidating below the 112.18 level for the past five days. With the support level at 111.13 – 110.85 holding out, the bias is currently in favor of the upside. However, USDJPY will need to clear past the previous highs and potentially retest the resistance level at 112.28 region in order to confirm the upside. Failure to do so could keep the currency pair trading sideways for the moment. In the event of a break down below 111.13 – 110.85, USDJPY could trigger a correction.
XAUUSD Intraday Analysis
XAUUSD (1213.68): Gold prices were seen trading flat with price action continuing to consolidate near the 1211 region. With the minor resistance level at 1219.75 holding out currently, Gold prices could be seen pushing lower. Unless the resistance level is breached, the price of the precious metal could remain under pressure. To the upside, above 1219.75 further gains could trigger a move toward the 1242.25 region. To the downside, there is a risk that Gold prices could extend its declines down to the support region of 1200.00 region.