Daily Forex Market Preview, 04/10/2017
The US dollar was seen taking a break following the previous sessions which saw the greenback posting some gains. Lack of any clear market moving events from the US yesterday saw investors in a holding pattern, ahead of today’s private payroll numbers.
In the UK, the construction PMI was weak, falling to 48.1. This was below forecasts of 51.1 and weakened from the same level from a month ago. The data marked a contraction in the construction sector for the first time since the July 2016 Brexit vote.
Looking ahead the ADP/Moody’s private payrolls data will be the main event for the day. Economists forecast that private payroll hiring rose 131k for the month of September, after an initial payroll print of 237k in August. With the hurricanes hitting the US shores last month, the possibility of a weaker jobs print is quite a possibility.
Among the central bank speeches today, the ECB president Mario Draghi and the Fed Chair, Janet Yellen will be speaking closer to the evening.
EURUSD intraday analysis
EURUSD (1.1768): The EURUSD closed with an indecisive candlestick pattern following the declines off the resistance level at 1.1822. Price action is currently attempting for a bullish day but the risks remain equally balanced. To the downside, the decline to 1.1688 will mark the completion of the descending triangle pattern. Price action was seen falling short of a few pips before the reversal yesterday. Resistance at 1.1822 – 1.1843 remains in focus for another retest to this level. The bias will shift to the upside on a close above this resistance level. In this case, EURUSD could be attempting to push higher with a new range between 1.2058 resistance and the support at 1.1822 – 1.1843 coming into play.
GBPJPY intraday analysis
GBPJPY (149.41): The British pound was seen extending the losses as price action cleared the support level at the support zone of 150.40 – 150.05. This breakdown below the support also validated the descending triangle pattern we see on the 4-hour chart. GBPJPY briefly rallied back to the support level to establish resistance. The reversal off this level could now signal a downside move. Support at 148.23 comes into focus and also marks the measured move of the descending triangle pattern. A decline to 148.23 will signal a reversal off this support level in the short term with GBPJPY likely to move sideways thereafter.
USDJPY intraday analysis
USDJPY (112.63): The USDJPY closed with a doji type candlestick yesterday. Price action has been consolidating near a long-term falling trend line for the past few daily sessions. This indicates a near-term decline to the downside. On the 4-hour chart, the rising wedge pattern remains in play although price action briefly rallied above the resistance level of 112.88. The reversal near this resistance level signals a possible downside move. Support at 111.74 remains in the picture as the likely downside target.
