By Orbex Blog
Daily Forex Market Preview, 10/01/2018
The U.S. dollar was seen extending it’s gains from the previous day. The lack of economic data on the day saw the markets focusing on rumors that the Bank of Japan could be reducing its bond purchases. The Japanese yen strengthened significantly across the board, rising 0.34% on the day. The U.S. dollar was the second best performing currency pair on Tuesday.
Data from the Eurozone showed that the unemployment rate fell to 8.7% as forecast. The unemployment rate was better than the previous month’s 8.8%. However, the common currency continued to extend losses.
Looking ahead, data from the UK stands out with the manufacturing, industrial and construction output data. Overall, output from all the three sectors is expected to show a modest improvement from the previous month. In the U.S. the import price data is expected to show a 0.4% increase, which is slower than the previous month.
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EURUSD intra-day analysis
EURUSD (1.1938): The EURUSD extended declines for the third consecutive day. Price action posted a reversal after falling to a two week low. However, we expect the declines to continue towards the 1.1900 handle as mentioned previously. To the upside, the gains are limited to the 1.2000 handle where resistance could be formed following a brief spell of this level serving as support.
USDJPY intra-day analysis
USDJPY (112.31): The USDJPY also extended losses yesterday with price action falling close to the 112.04 level of support. Currently, we notice a rebound in prices but, the bearish momentum is likely to see price eventually retest the familiar support level. Price action in USDJPY remains flat at the moment unless we see a breakdown of the support level. In this case, USDJPY could be seen testing the lower support near 111.50 area. To the upside, a rebound off the 112.04 support could keep prices continuing to trade sideways.
NZDUSD intra-day analysis
NZDUSD (0.7170): The New Zealand dollar was seen holding on to the gains with price briefly testing the support established at 0.7160. Price action has remained flat above this level and comes at a risk of a downside correction to 0.7062. However, the Stochastics oscillator is currently pointing to the bullish momentum being resumed. This could see NZDUSD sustained above the 0.7160 handle. Assuming the sharp rising wedge pattern is validated, we could expect to see some downside correction taking place.