By Orbex Blog
Daily Forex Market Preview, 27/04/2018
The European Central Bank left monetary policy unchanged at its meeting yesterday as widely expected. The central bank retained the same language from the previous monetary policy meeting. At the press conference, the ECB President Draghi said that the central bank was monitoring the developments in the economy while he downplayed the recent soft patch in the economy. The euro was seen posting strong losses on the day.
Elsewhere, economic data over the day saw the release of the core durable goods orders which remained flat and fell short of expectations of 0.5%. Previous month’s data was revised down to 1.0%. Durable goods orders however increased 2.6% on the month. This beat forecasts of 1.6% on the month.
Looking ahead, the GDP data from the U.S. and the UK will be coming out today. The U.S. economy is forecast to rise 2.0% on the month while the UK’s GDP is forecast to rise at a slower pace of 0.3%. Later in the day, the Bank of England Governor Carney is expected to speak.
EURUSD intra-day analysis
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EURUSD (1.2111): The EURUSD currency pair posted strong losses on the day after price action failed to find support at 1.2180 level. The breakdown below this level signaled a decline with the EURUSD now seen trading close to the lower support level at 1.2090. We expect to see some consolidation at this level and could potentially mark a short term reversal. The short term correction could see the EURUSD test the 1.2180 level where resistance could be established.
GBPUSD intra-day analysis
GBPUSD (1.3925): The British pound was seen trading in a range within 1.4000 and 1.3900 levels. The sideways range is expected to trigger a breakout in the near term with the UK’s preliminary GDP data on the tap today. To the upside, a breakout above 1.4000 could signal a potential correction back to 1.4162 level. To the downside, a breakdown below 1.3900 could mark a correction towards the 1.3800 round number support. The Stochastics is currently pointing to a bullish divergence that is being formed, which could signal a correction to the upside.
XAUUSD intra-day analysis
XAUUSD (1317.63): Gold prices briefly tested the price level of 1325 before easing back lower. Gold prices fell to test new lows near 1314 levels with the current price action posting a wedge pattern. A breakout from this wedge pattern could signal an upside breakout. Gold prices are likely to test the resistance level at 1325 once again with further gains coming on a breakout above this resistance level. A close above 1325 could send gold prices higher on the day and potentially targeting the next main resistance level at 1337.
