By Orbex Blog
Daily Forex Market Preview, 27/11/2017
The euro currency managed to post strong gains on Friday with the U.S. dollar identified as weakening. The rally in the common currency saw the 1.1900 handle being reclaimed once again. The decline in the U.S. dollar came amid stronger economic data from the Eurozone.
Oil prices also posted strong gains on Friday ahead of the OPEC meeting that is due to start this week. WTI Crude oil prices are seen trading close to the $60 a barrel price level. OPEC member nations and Russia are expected to announce further extensions to the oil production cuts this week.
Looking ahead in the economic calendar today there is some light activity. The U.S. trading session will see the release of the new home sales data. Economists polled are expecting to see the new home sales data rise to 627k in October. Previously, new home sales data surged by 667k in September marking a strong increase. Elsewhere, the BoE chief economist Andy Haldane is expected to speak today, followed by the outgoing FOMC voting member, Kashkari.
EURUSD intra-day analysis
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EURUSD (1.1923): The euro closed with strong gains on Friday marking a four day winning streak. Price action is seen trading close to 1.1950 level, where an unfilled gap from the 22nd of September is likely to be filled. In the near term, EURUSD could potentially correct itself downwards with support seen at the 1.1842 – 1.1822 level. Establishing support at this previously established resistance level will signal further increases in the near term. Above 1.1950, EURUSD could be seen aquiring further gains towards the 1.2000 handle. However, failure to establish any near term support could see EURUSD at the risk of correcting downards.
USDJPY intra-day analysis
USDJPY (111.37): USDJPY attempted to reverse the losses with Friday’s price action turning bullish. However, an early Asian trading session shows the price retracing back those gains. We expect to see a higher low being formed near the current levels. This would indicate a short-term correction towards the 112.00 level where resistance could be established. In the event that the USDJPY posts further declines, the lower support near 111.00 will be tested. The declines are likely to be held near this support level initially ahead of a short term correction. Alternately, a decline near 111.00 could see USDJPY falling towards 110.75 level which will mark the decline downwards.
XAUUSD intra-day analysis
XAUUSD (1290.35): Gold prices managed to remain supported above the 1285 handle. However, price action remains choppy as gold prices started retreating from the previous highs formed near the 1296 level. In any case, we are expecting the declines to stall near the 1285 level where support could be formed. A rebound off this level will signal the near term gains that could target the 1300 region where resistance is seen. Alternately, a break down below 1285 could see gold prices moving back into the familiar range that was established with the lower support seen forming at 1274.
