Daily Forex Market Preview, 30/08/2017
The US dollar was seen pulling back from a 31-month low. The US dollar index fell to 91.54 yesterday as reports about the missile test from North Korea rattled the markets. However, the markets recovered later on with the greenback closing with modest gains.
On the economic front, the conference board's consumer confidence report rose to 122.9, beating estimates of 120.9, although the previous month's report was revised down to 120.0. The U.S. housing price index was also seen rising at the same pace as the previous month at a rate of 5.7% on the month.
Looking ahead, the economic calendar starts to gain pace. The US private payrolls data will be coming out today with forecasts showing that private sector hiring rose 186k in August. This is above July's print of 178k. Later, the second revised estimates for the quarterly GDP data is expected to show that the US economy expanded 2.7% in the quarter ending June.
EURUSD intraday analysis
EURUSD (1.1978): The euro touched fresh highs at 1.2069 yesterday, filling the gap from January 2015. With price action pulling back off the session highs, we could expect to see some retracement in the near term. Price could potentially consolidate near 1.2000 handle before we can expect to see some declines. A near-term bounce could see EURUSD retest the 1.2000 resistance level while support is seen at 1.1882 and 1.1825. Further gains could be seen coming, but with the Friday's payrolls report and next week's ECB meeting, the common currency could head into a period of consolidation.
GBPUSD intraday analysis
GBPUSD (1.2928): The British pound also posted modest gains, but price action fell to close bearish on the day. Still, the upside bias remains as the British pound could be seen pushing towards the 1.3032 handle where resistance could be most likely tested. In the event that GBPUSD posts a reversal, we could expect the declines to push back to the current support established at 1.2908. Therefore, GBPUSD remains range bound within these levels. A breakout off the support or resistance could suggest further continuation in the trend.
USDJPY intraday analysis
USDJPY (109.78): USDJPY fell sharply yesterday to mark a 4-month low at 108.26. The greenback managed to recover as the currency pair closed bullish on the day. Further near-term gains can be expected if the momentum to the upside continues. Price action is seen breaking past the second falling trend line. In the near term, we cannot rule out another dip to the support level at 109.15. However, the bullish momentum can be expected only on a breakout above the resistance level that was established at 110.72. The breakout is also marked be the descending triangle pattern that is seen suggesting some near term upside to 110.72.