The U.S. dollar traded subdued amid a quiet trading day. Economic data on the day showed that the Eurozone’s industrial production fell 1.7% on the month. This was worse than the forecast of a 0.3% increase and down from a revised 0.1% increase from the month before.
The markets are looking at a quiet trading day during the European trading session. The U.S. producer prices index data forecasts that the U.S. inflation at factory gate fell by 0.1%. Core PPI should increase by 0.2% on the month, marking a slower pace of increase.
Later in the day, the ECB President Mario Draghi is scheduled to speak.
The main highlight of the day is the tentative Parliament vote on Brexit which could bring a lot of volatility to the markets. There is a strong consensus that the UK could potentially seek an extension to the March 29 deadline if the vote is rejected by a considerable margin in the parliament today.
EURUSD Intraday Analysis
EURUSD (1.1480): The EURUSD tested the support at 1.1461 level. Price action managed to hold on to the upside for the moment. As long as this support holds, the common currency could be pushing higher. The upside target is at 1.1575 which marks the minimum target of the ascending triangle pattern that has been validated. However, failure to hold on to the gains above 1.1461 could invalidate the bullish assessment and push the euro back into its previous range.
AUDUSD Intraday Analysis
AUDUSD (0.7211): The Australian dollar holds on to the support at 0.7191. Price action remains biased to the upside with the next target seen at 0.7292 which previously held as support for a brief period. To the downside, the AUDUSD could be at risk of a downside correction if the support fails. The minor rising trend line was breached and currently, price tests the breakout level. As a result, the AUDUSD needs to post further highs to confirm the upside.
XAUUSD Intraday Analysis
XAUUSD (1290.92): Gold prices attempted to post some gains, but the intraday rally fizzled out. Price action remains perched at the top, and the consolidation has now turned into a triangle pattern. This potentially indicates a breakout off the current levels. The risks carry a certain degree of bias, but we expect gold prices to trend lower. A downside breakout could result in the 1280 handle being tested with a follow through sending gold prices lower to the 1250 handle. To the upside, if the resistance at 1296 gives way, gold prices could be aiming for 1310 which marks the minimum upside target.