By Orbex Blog
Daily Forex Market Preview, 28/11/2017
The markets were seen trading rather mixed with the U.S. dollar identified as weakening. The euro briefly rallied to 1.1950 levels while gold prices rose close to the 1299 handle. On the economic front, the new home sales data was the only major economic release yesterday. Data showed that sales of single family units rose 6.2% in October, marking the highest increase in a decade.
Looking ahead, the Fed nominee, Jerome Powell’s confirmation hearing is scheduled to begin today. On the economic front, the markets will be looking to the speech by BoE’s Carney. In the U.S. the goods trade balance and wholesale inventories report is due. Later in the evening, the BoC governor Poloz is scheduled to speak.
EURUSD intra-day analysis
EURUSD (1.1906): The EURUSD rallied to test the level above 1.1950 yesterday. However, price action was bearish as the common currency gave up the gains, closing on a bearish notice. In the near term, we expect price action to consolidate near this level. Although the euro fell sharply by late yesterday, we expect to see another short-term attempt to retest the 1.1950 level. On the downside, the risks are increasing as price could be seen testing the support level at 1.1843 – 1.1822. Establishing support at this previous resistance level will pave way for further gains.
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USDJPY intra-day analysis
USDJPY (111.18): The USDJPY continued to extend it’s declines. Price action weakened after a brief attempt to rally. As a result, USDJPY was seen falling back to retest the support level at 111.00 – 110.88. We expect to see USDJPY consolidating near this level with the potential to briefly dip lower. The bias remains flat at the moment, but further weakness could come in on a break down below this support level. On the upside, USDJPY will need to post gains above the recent local pivot high near 111.30. A close above this level will send USDJPY posting a correction towards 112.04 resistance.
XAUUSD intra-day analysis
XAUUSD (1294.44): Gold prices continue to remain volatile although price action has managed to clear the resistance level of 1285. We expect this ranging phase to continue with another retest of 1285 where support could be formed. On the upside, the target towards the 1300 level remains in focus. Gold prices could be seen edging closer to this level in the near term. However, there is a risk of price posting a correction. Unless the support at 1285 fails to hold price, we can expect gold prices slipping below this level.
