By Orbex Blog
Daily Forex Market Preview, 08/12/2017
The U.S. dollar was seen strengthening off the back of investor optimism, due to the fact that the tax benefits could help boost the economy. The U.S. dollar index rose to a one-month high ahead of the payrolls report that is due to be released later today.
Economists polled expect to see the U.S. unemployment rate staying steady at 4.1% while wage growth is expected to accelerate. The payrolls report comes ahead of next week’s Fed meeting where interest rates are widely expected to be hiked.
In the UK, the British pound continued to trade volatile on the Brexit related news. Manufacturing production and construction output data is expected to be released today. Forecasts put the manufacturing production to rise just 0.1% on the month while, construction output is expected to rise 0.2%.
EURUSD intra-day analysis
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EURUSD (1.1763): The EURUSD continued to post declines to the downside for the third consecutive day. Price action is seen nearing the support level at 1.1704. This will see a retest of the support level which previously served as a break out from the descending wedge pattern that was formed. In the near term, EURUSD’s gains are limited to the 1.1843 – 1.1822 level where resistance could be formed. To the downside, the declines could see EURUSD push lower towards the support level at 1.1710 – 1.1688.
USDJPY intra-day analysis
USDJPY (113.33): The U.S. dollar posted strong gains following the rebound off the 112.00 level of support. Price action remains biased to the upside especially after breaching the 113.20 level of resistance. In the near term, USDJPY could be seen pushing back lower to retest the support at 112.65 support. Establishing support at this level could signal further upside in price. However, in the event that USDJPY slips below 112.65, we could expect to see the declines pushing lower towards the 112.04 lower support.
XAUUSD intra-day analysis
XAUUSD (1248.74): Gold prices fell to a 5-month low yesterday following the breach of the support level at 1262.80 level. Price action on the 4-hour chart currently shows an inside bar being formed. An upside breakout from this level could potentially suggest a retest of the broken support level for resistance to be formed. The bias remains to the downside in the near term with new sellers likely to emerge if the resistance level holds up. Alternately, in the event that gold prices break out above the 1262.80 level, we could expect to see a retest towards the 1285 resistance level.
