By Orbex Blog
Daily Forex Market Preview, 18/01/2018
The U.S. dollar posted a strong rebound yesterday. Lack of economic data from the U.S. saw investors focusing on the broader macro themes. Apple Inc’s announcement about repatriating billions of dollars in overseas cash saw the markets react bullishly on the news.
On the economic front, the Eurozone inflation report showed that final inflation figures for December were confirmed at 1.4% on the headline and 0.9% on the core. The Bank of Canada hiked interest rates for the third time yesterday since last year bringing the overnight cash rate to 1.25%. However, the Canadian dollar was seen falling as BoC’s Poloz cited concerns about the NAFTA deal and the impact on the Canadian economy.
Looking ahead, China’s GDP data is on tap today. Economists forecast a 0.6% increase in the economy on the quarter. In the U.S. trading session, the building permits data will be coming out followed by the U.S. crude oil inventories report.
EURUSD intra-day analysis
Free Reports:
EURUSD (1.2185): The EURUSD posted strong declines yesterday as price fell to a two day low. The declines come following Tuesday’s doji candlestick pattern that was formed. On the intraday charts price action is seen currently trading near the median line which could offer dynamic support in the near term. We expect to see a short term bounce, following which price action could be pushing higher to form a lower high. As long as the previous highs are not breached, EURUSD is expected to reverse the gains targeting the support level at 1.2090 – 1.2070 support level.
USDJPY intra-day analysis
USDJPY (111.45): USDJPY posted a recovery as price action turned bullish yesterday. Closing above the 111.00 level of support, further gains could be expected if USDJPY manages to find support near 111.00 on a dip. We expect that the currency pair will target the next upside resistance at 111.61 region. The main test of resistance will be seen at 112.00 which previously served as support and was eventually breached. A break out above 112.00 could signal further gains in the medium term. However, for the moment, USDJPY could remain below the 112.00 resistance level upon successfully retesting this level.
NZDUSD intra-day analysis
NZDUSD (0.7270): The NZDUSD was seen trading flat yesterday despite the currency pair rising to a fresh 4-month high. Forming an outside bar, the current rally in NZDUSD could be seen coming to a close. The downside correction could see NZDUSD falling back to 0.7160 in the near term. Finding support at this level could offer a temporary bounce in price. However, if the support fails, NZDUSD could slip towards the 0.6943 support level.