Daily Forex Market Preview, 24/07/2018
The U.S. dollar was seen managing to stabilize on Monday. Economic data was sparse. In the NY trading session, the existing home sales report showed a decline to 5.38 million. This was slower than the forecasts of 5.44 million.
The previous month’s data was revised to 5.41 million and the report marked a third consecutive month of decline in existing home sales.
The economic calendar today will see the release of the flash services and manufacturing PMI figures from Markit covering the Eurozone and the U.S.
Activity in the Eurozone is expected to show a broadly unchanged picture while in the United States, activity in the manufacturing and services sector is expected to show a slight moderation from the previous month’s increase.
The U.S. Richmond Fed manufacturing index will be coming out later with forecasts pointing to a decline in the index from 20 last month to 18.
EURUSD intra-day analysis
EURUSD (1.1688): The EURUSD currency pair was seen easing back from the resistance level of 1.1730 on Monday. Price action retraced some of the gains made from Friday. On the 4-hour chart, the minor support is seen at 1.1686 level. As price action is seen testing this level, a rebound of this support is required to keep prices floated to the upside. Failure to hold the support could trigger a decline back to 1.1600 level.
USDJPY intra-day analysis
USDJPY (111.30): The USDJPY currency pair extended losses as price action was seen trading near the support region of 111.13 – 110.85. The consolidation at this level could see the declines continuing to extend lower. A breakdown below the support could push USDJPY lower with the next support seen at 109.45. To the upside, price action is seen struggling to breakout to the upside after breaching the trend line. Any gains are likely to stall back bear the 112.28 resistance provided USDJPY breaks past the previous local highs.
XAUUSD intra-day analysis
XAUUSD (1222.14): Gold prices posted a modest rally but price action was seen easing back again. As gold prices approach the support level of 1219, we could anticipate a possible bottom in the making. Failure to reverse around this level will see further losses being extended. To the upside, price action will need to break past the previously established highs in order to rise to the resistance level at 1242.25.