Daily Forex Market Preview, 30/10/2017
The euro was seen trading weaker after developments since Friday saw the region of Catalonia declaring independence. This comes amid Spanish government seeking a resolution to impose direct authority over the region.
On the economic front, data on Friday showed that the preliminary GDP in the US for the third quarter beat estimates, rising 3.0% in the three months ending September. The report briefly sent the US dollar higher on the day before the greenback settled back to close at the open.
Looking ahead, the economic calendar is relatively quiet today ahead of what could be a busy week. The US core PCE price index data is forecast to rise 0.1% on the month, but personal income and spending are both expected to rise strongly.
EURUSD intraday analysis
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
EURUSD (1.1613): The EURUSD breached the support level at 1.1710 – 1.1672 on Friday. The breakdown of this support level suggests further downside in price with a test towards the 1.1440 support level. On the 4-hour chart, the validation of the descending triangle pattern could see price attempting to retrace the losses back to the breached support level. If price action moves back to 1.1710 – 1.1672, then we can expect the resistance level to be established here. A reversal at this level is likely to keep prices poised to the downside. In the event of a move above 1.1710 – 1.1672, then EURUSD could be seen trading within the new range above this support level.
USDJPY intraday analysis
USDJPY (113.57): USDJPY managed to rally back to the resistance level on Friday but closed on a bearish note. Price action remains consolidating within the rising wedge pattern on the daily chart. This suggests a potential breakdown to the downside. Initial support is found at 110.70 followed by a test towards 108.26 eventually. On the 4-hour chart, initial support is seen near the price level of 113.00 that could offer some short-term support. However, following this bounce, we expect further declines to be extended towards 110.70.
XAUUSD intraday analysis
XAUUSD (1271.66): Gold prices continued to push lower last week as price briefly fell close to the 1266 handle in the short term. The current consolidation seen at 1272 level will be crucial for price action in the short term. A convincing close above this level will suggest further upside towards 1285.00. A potential breakout above this level though will shift to the bullish bias in gold prices. The next main resistance level is seen at 1324 – 1320 level.
