China hits back with new tariffs on U.S. imports – Intraday analysis 02-04-2018

Intraday analysis 02-04-2018 – Daily Forex Market Preview

The markets gapped higher this morning following a three day weekend. The U.S. dollar was seen closing flat on Thursday. Economic data was relatively sparse with the end of quarter flows driving prices.

News over the weekend included China imposing fresh tariffs on imports from the U.S. This is expected to hit the market sentiment especially during the NY trading session. Over the weekend, the BoJ’s tankan surveys showed that business sentiment weakened in the first quarter of the year. This came amid higher revised readings for the fourth quarter of last year.

Looking ahead, the European markets are closed today on account of Easter Monday holiday. The economic calendar is relatively quiet but gets busy during the NY trading session. Important economic data for the day includes the ISM’s manufacturing PMI for March. Economists forecast that manufacturing activity slipped modestly to 60.1 from 60.8 in February.

Later in the day, the construction spending data for February is expected to show a 0.4% increase following a flat reading the month before.

 

EURUSD intra-day analysis

Intraday analysis 02-04-2018 EURUSD

EURUSD (1.2315): The EURUSD closed on Thursday with a doji and price action is expected to see a possible reversal if the declines can stall around Thursday’s close near 1.2300 region. On the four hour chart, we expect the near term to be biased to the upside. Resistance at 1.2363 is likely to be tested. However, in the event that price action continues to slip below Thursday’s close, we could expect to see further declines pushing the EURUSD lower toward the 1.2180 handle.

 

GBPUSD intra-day analysis

Intraday analysis 02-04-2018 GBPUSD

GBPUSD (1.4038): The British pound closed on Friday with strong declines, touching below the 161.8% measured move target of the bearish flag pattern formed on the 4-hour chart. The reversal which came just a few pips shy of the 1.40 round number support saw prices briefly retesting 1.4044 level. A follow through from here could signal a touchdown to the 1.40 handle. Only a close above 1.4044 will shift the bias to the upside, with the resistance at 1.4115.

 

XAUUSD intra-day analysis

Intraday analysis 02-04-2018 XAUUSD

XAUUSD (1328.07): Gold prices formed a doji pattern on Thursday following the previous two days of strong declines. The doji comes just below the 1328 level. A bullish close today could signal some near term correction in prices. Resistance at 1336 is seen which could come in as the first level of resistance and could keep gold prices caught within the range of 1336 and 1328 region. A breakout from either of these levels could determine the next leg of direction in the broader downtrend.

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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