China’s tariffs on U.S. imports puts investors on the back foot – Intraday analysis 03-04-2018

Intraday analysis 03-04-2018 – Daily Forex Market Preview

The markets opened yesterday amid thin trading yesterday. Investors woke up to the news about China imposing fresh tariffs on certain U.S. imports which was seen as a retaliation to the U.S. tariffs on steel and aluminum. Equity markets fell on the day and the Japanese yen was seen strengthening on a modest risk off sentiment.

Gold prices surged 1.19% while the Japanese yen rose 0.27% on the day.

The ISM manufacturing PMI data for March showed that the index fell to 59.3 which was more than the forecast of a decline to 60.1. This comes amid the manufacturing index hitting recent fresh highs at 60.8 in February. The ISM manufacturing prices however posted strong gains, rising to 78.1 and beat forecasts of 72.5.

Earlier today, the Reserve Bank of Australia was seen keeping interest rates unchanged at 1.50% as widely expected for the 18th consecutive month. Looking ahead, the economic calendar for the day covers the final manufacturing PMI from the Eurozone.

In the UK, the manufacturing PMI data for March is expected to show the index slipping to 54.8 down from 55.2 in February. Fed member, Brainard is scheduled to speak later in the evening.

 

EURUSD intra-day analysis

Intraday analysis 03-04-2018 EURUSD

EURUSD (1.2307): The EURUSD rose to intraday highs of 1.2344 before giving up the gains. Price action remained weak on the day. However, the common currency is looking to post some gains in the early Asian trading session. We expect the euro to remain subdued below the 1.2363 level of resistance in the near term. Any gains are likely to be capped near the resistance level with the potential for a reversal expected to keep prices range bound below 1.2363 region.

 

GBPUSD intra-day analysis

Intraday analysis 03-04-2018 GBPUSD

GBPUSD (1.4056): The British pound formed an inside bar and price action was seen slipping back to previous levels, albeit forming a higher low. This suggests that price could be attempting to push higher in the near term. The immediate resistance level at 1.4115 is the ideal target to the upside that could be tested. To the downside, the support at 1.4000 is most likely to hold the declines.

 

XAUUSD intra-day analysis

Intraday analysis 03-04-2018 XAUUSD

XAUUSD (1338.05): Gold prices posted strong gains on the day following last Thursday’s doji candlestick pattern. Price rallied close to the 1345 handle before giving up the gains promptly. We expect gold prices to resume the sideways range within 1345 and 1336 level with a breakout from this range likely to push gold prices back to the 1328 handle. Below this level, further declines could send gold prices falling toward the 1307 level of support.

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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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