Daily Forex Market Preview, 09/10/2018
With the U.S. and Canadian markets closed, trading was relatively subdued. Still, the U.S. Dollar managed to maintain a steady pace of gains on Monday.
On the economic front, China’s Caixin services PMI was seen rising to 53.1 for September. This beat estimates of 51.4 and advanced from 51.5 in August.
In Switzerland, the unemployment data showed that the national unemployment rate was steady at 2.5% as expected. The unemployment rate fell by 0.1 percentage point from the month before.
In the Eurozone, industrial production figures from Germany showed a 0.3% decline on a month over month basis. This missed estimates of a 0.4% increase and the declines followed through from a 1.3% decline in the previous month.
The economic calendar for the day will see the release of the trade balance figures from Germany. Estimates show that trade balance increased to 15.9 billion from 15.8 billion in the month before.
The economic data over the rest of the day is relatively quiet. The U.S. and Canadian markets open today after Monday’s bank holiday. Canada will be releasing the housing starts data. Economists forecast housing starts to rise 203k advancing from 201k from the previous month.
Later in the evening, the BoE member Broadbent will be speaking.
EUR/USD intraday analysis
EUR/USD (1.1490):
The EUR/USD currency pair attempted to test the 1.1540 level briefly, but price action turned weaker on the day. The resistance area putting a cap on any gains is expected to push the common currency lower. The next support level is seen at 1.1435 which could be tested in the near term. This will mark the retest of this level which previously served as resistance. In the event of a break down below this level, further declines could push the common currency lower to 1.1315 level.
GBP/USD intraday analysis
GBP/USD (1.3092):
The GBP/USD currency pair was seen easing back to the support level at 1.3054 – 1.3028. The rebound off this support level could trigger further upside. Price action will need to clear the short-term high formed at 1.3135. A close above this high could confirm further gains. The resistance level at 1.3250 remains the likely target to the upside. Failure to rise above 1.3135 could, however, keep the GBP/USD subdued. A break down below the support will signal a move toward 1.2808.
XAU/USD intraday analysis
XAU/USD (1191.15):
Gold prices fell sharply on the day as price action is seen recovering from the lows above 1183.00 region. Price action in gold remains flat in the medium term with the support at 1183 and the resistance at 1212.05 keeping the precious metal trading sideways. If gold prices break the floor at 1183.30, then we expect the declines to test 1170 region. To the upside, further gains can be expected only on a break out above 1212.05 resistance.