Daily Forex Market Preview, 27/09/2017
The Fed Chair Janet Yellen spoke last week as she revealed that the central bank might have overstated the strength of the labor market and inflation estimates. Speaking in Cleveland, Ms. Yellen said that the trends in the employment, wage and price pressures shifted from what officials had forecasted.
She said that this would mean a more dovish Fed when it comes to monetary policy tightening. At its meeting last week, the FOMC left interest rates unchanged and lowered its forecasts for inflation. Yellen, however, said that the pace of rate hikes is warranted.
Looking ahead, the economic data today will see the US durable goods orders followed by speeches from the BoC Governor, Poloz and Lael Brainard from the FOMC. Later in the evening, the RBNZ will be announcing its monetary policy decision. The RBNZ’s OCR is expected to remain unchanged at 1.75%.
EURUSD intraday analysis
Free Reports:
EURUSD (1.1787): The euro continued to post declines against the US dollar yesterday with price action closing below the 1.1822 support level. A break off this support level suggests further decline in prices with the next main support coming into focus at 1.1672. On the 4-hour chart, we can see that the breach of 1.1822 has put the descending triangle pattern into play. However, we can expect some near-term correction back to the broken support level where resistance could now be formed. The downside remains towards the 1.1672 – 1.1688 support level and will mark a short-term correction to the EURUSD rally.
GBPUSD intraday analysis
GBPUSD (1.3441): The British pound continues to remain volatile with yesterday’s price action closing with a doji pattern. We can expect some downside correction in prices as a result. On the 4-hour chart, the continued consolidation within the bullish flag pattern hints at a possible weakening of this continuation pattern. Price action is sill support in the price zone of 1.3488 – 1.3441. However, a close below this level could signal a correction in the British pound. Lower support level at 1.3236 will be most likely tested as a result.
XAUUSD intraday analysis
XAUUSD (1295.35): The modest rally in gold prices saw a retreat as price fell back to the familiar support zone. Gold prices briefly tested once again the lower end of the support at 1290. However, we can expect to see some near-term upside taking shape once again. A close above 1300 could signal a continuation towards the 1324 – 1320 level. Further gains can be expected only on a breakout above this resistance level with the long-term target at 1345.87.
