By Orbex Blog
Daily Forex Market Preview, 19/12/2017
The U.S. dollar was seen trading weaker amid a lack of macro-economic themes. The U.S. Congress is expected to pass President Trump’s tax reforms bill before the end of the week. The weaker U.S. dollar saw precious metals attempting to post some gains, as gold and silver prices rose by 0.5% within the day.
In the Eurozone, the final inflation figures confirmed that headline inflation in the Eurozone rose by 1.5% on a year over year basis in November. Core inflation rate was seen rising 0.9% in November. There was no change to the data following the flash inflation estimates.
Looking ahead, the U.S. building permits data will be coming out today. Building permits are expected to rise 1.28 million which will be followed by the housing stats data. FOMC Member, Kashkari who voted against the rate hike will be speaking later today.
EURUSD intra-day analysis
Free Reports:
EURUSD (1.1787): The EURUSD managed to rise to a two day high however the currency pair pulled back despite closing with some gains. Price action remains trading within the range established. Resistance at 1.1843 – 1.1822 is expected to keep the gains in check, while the support at 1.1710 – 1.1688 remains supportive of prices to the downside. The sideways consolidation is expected to continue until the range is breached. To the upside, the breakout above the resistance level could see the EURUSD extend the gains towards 1.1920. To the downside, a breach of support could push EURUSD down to 1.1552.
USDJPY intra-day analysis
USDJPY (112.61): The USDJPY continues to consolidate following the strong declines from last week’s FOMC meeting. In the long term, USDJPY remains biased to the downside as price action is expected to eventually decline to 110.70. On the 4-hour chart, USDJPY managed to post a retracement. However, the lower high formed here could potentially signal further downside in price. Support at 112.04 which was briefly tested is expected to be retested once again. A break down below this level could see the USDJPY extending further declines. To the upside, resistance at 113.00 region remains likely to keep a lid on gains.
NZDUSD intra-day analysis
NZDUSD (0.6999): The New Zealand dollar continues to trade flat after price action breached past the resistance level 0.6981. This level is now expected to act as support and any declines are expected to be testing this level in the short term. To the upside, the bullish momentum is expected to push the kiwi dollar towards the 0.7062 level of resistance. However, further gains can be expected if the consolidation breaks out to the upside. Price action will need to close above the previous highs formed at 0.7022.