By Orbex Blog
Daily Forex Market Preview, 16/03/2018
The U.S. dollar was seen posting some modest gains yesterday with investors positioning themselves ahead of the FOMC meeting next week. Expectations of an interest rate hike stands close to 90% for next week’s Fed meeting.
On the economic front, the Swiss National Bank held its monetary policy meeting yesterday. The central bank maintained the three-month LIBOR rate at -0.75% and did not offer any new signals for the market as far as the Swiss monetary policy was concerned. The Norges Bank also held its meeting yesterday with interest rates left unchanged. However, the Norwegian central bank signaled that interest rates could rise by September this year.
Looking ahead, the Eurozone final inflation estimates will be coming out later today. Economists’ forecasts point to subdued pace of increase in consumer prices. In the U.S. the building permits and housing starts data will be coming out followed by the industrial production figures.
EURUSD intra-day analysis
Free Reports:
EURUSD (1.2310): The EURUSD was bearish yesterday with price action extending the declines for the second day. However, the declines pushed the common currency back below the 1.2333 level of support. The sideways range is expected to continue into next week’s FOMC meeting. Uncertainty surrounding Trump’s policies on trade along with the changes in Washington continue to keep the U.S. dollar subdued. The EURUSD is expected to be trading near the 1.2333 level with the declines like to stall near the previously established lower support at 1.2179.
GBPUSD intra-day analysis
GBPUSD (1.3922): The British pound was seen trading soft above 1.3902. Following the doji session two days ago, price action was seen closing on a bearish note yesterday. A close below 1.3902 is required for the currency pair to post further declines. The near-term declines could stall near the 1.3905 level where support could be established. GBPUSD is yet to test the 1.4007 level which marks the near-term target for the bullish ascending triangle formed on the 4-hour chart. However, if price closes below 1.3902, we can expect dynamic support coming in from the falling trend line.
XAUUSD intra-day analysis
XAUUSD (1316.75): Gold prices were seen retreating off the 1328 level with price action currently biased to the downside. Support at 1307 could be tested in the near term if the downside momentum continues. We expect to see gold prices potentially holding the declines at this support level and could move into a sideways range into next week’s FOMC meeting. A break below 1307 could extend the declines towards the round number support at 1300.00.