Daily Forex Market Preview, 11/09/2017
The US dollar continued to ease against most of its peers with Friday’s session seeing the US dollar index falling 9.1% on a year to date basis. Besides geopolitics, a dovish Fed alongside the hurricanes in the US has kept the sentiment in the greenback in check.
On the economic front, following a rather busy Thursday, Friday saw the release of UK’s manufacturing and construction output. With the exception of manufacturing production, construction output fell 0.9% while industrial production rose a modest 0.2% as expected. Canada’s monthly employment report saw the unemployment rate falling to 6.2% while the economy added 22k jobs during the month.
Looking ahead, the economic calendar today is light with no major events to fall back upon. Italian industrial production numbers are due to come out at 0800 GMT followed by housing starts data from Canada later in the afternoon.
EURUSD intraday analysis
Free Reports:
EURUSD (1.2014): The EURUSD posted strong gains last week with the rally being driven partly by the ECB’s decision on Thursday and a weaker US dollar. By Friday’s close price action was seen pulling back from the 1.20 handle marking a retest of this level for the second time. On the 4-hour chart, we notice that the pullback in the EURUSD will see a retest of the minor support that will be formed at 1.1962. This support could mark the cup and handle pattern that is still evolving. A reversal off 1.1962 will push EURUSD towards 1.2200. Alternately, if the support level at 1.1962 fails, the common currency could slip to the next downside target of 1.1882 which is another strong technical level of interest in the currency pair.
GBPUSD intraday analysis
GBPUSD (1.3180): The British pound continued on Friday with strong gains to test the 1.32 handle. The currency gained strength despite the economic data over the week suggesting weakness, especially in the construction and services sector. The week ahead will be intense for the British pound as the inflation, jobs and the BoE meeting will see traders turning cautious on the British pound. Near-term momentum could keep the GBPUSD biased to the upside for a test towards the previously established resistance level of 1.3236. However, a pullback is likely as the support level at 1.2980 – 1.2961 remains in focus.
USDJPY intraday analysis
USDJPY (108.41): The USDJPY continued to slide as the price fell to session lows of 107.31. Further declines could be expected as the currency pair broke past the support level of 108.64 – 108.26. A minor pullback to this recently breached support level could establish resistance. A reversal off this level will set USDJPY on track to post further losses. In the unlikely event of a breakout above the support level, the bias could be shifting to the upside with 111.00 level of resistance coming into focus.
