Daily Forex Market Preview, 20/11/2017
The U.S. dollar was seen easing back by Friday’s close. This came amid a slightly better than expected building permits and housing starts data. However, the markets shrugged aside the data and the U.S. dollar index continues to consolidate near the support level.
Canada released its monthly inflation figures. Data showed that consumer prices eased in October as inflation slowed to 1.4% annually. This was slower than the 1.6% increase registered on an annual basis the month before. The decline in the inflation came on account of slower fuel price increase.
Looking ahead, the economic data today includes a scheduled speech by ECB President Mario Draghi. Draghi is expected to testify to the European Parliament in Brussels today and the recent ECB’s monetary policy actions are likely to be addressed as well. On the economic front, data today includes the German PPI numbers which is forecast to rise 0.2% compared to 0.3% increase posted previously.
EURUSD intra-day analysis
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EURUSD (1.1733): The EURUSD managed to consolidate near the 1.1800 handle on Friday. Price action remains slightly bullish following the breakout above the 1.1704 resistance level. In the near term, EURUSD might be posting a pullback towards the 1.1704 support level. Establishing support here could keep EURUSD biased to the upside. The next main resistance that could be targeted comes in at 1.1950 region. To the downside, in the event that EURUSD slips below 1.1704 – 1.1672 level and fails to establish support we can expect the downside momentum to push the currency lower towards the 1.1500 support.
USDJPY intra-day analysis
USDJPY (112.01): The USDJPY extended the declines on Friday as price slipped through to the 112.00 support level. This marks the first target that has been achieved to the downside. Any gains are likely to be limited to the 112.80 – 113.00 level. The pullback to this level will suggest further downside in price. USDJPY is likely to extend the declines down to the 110.70 level in the coming week or two. This would mark the completion of the rising wedge pattern on the daily chart. From the 110.70 support, USDJPY could however start to renew its bullish momentum. Still, as long as the upper resistance near 114.00 remains in place, USDJPY could be seen trading flat.
XAUUSD intra-day analysis
XAUUSD (1291.99): Gold prices rallied to a 4-week high by Friday’s close as price action cleared past the major resistance level near 1285.00. As expected, the upside breakout from the range within 1285.00 and 1274 region suggests further upside in price. We expect the upside momentum to continue with price action potentially targeting the next main resistance level at 1304 – 1300 region. To the downside, any declines will be limited to the 1285.00 level here support could now be established. In the short term however, the pullback to 1285.00 level could be limited with any pullbacks likely to be shallow.
