Daily Forex Market Preview, 27/12/2017
The markets were relatively quiet yesterday with most of Europe closed while the economic data from the U.S. were scant. The S&P/CS housing price index data rose 6.4%, beating estimates of 6.3%. However, the Richmond Fed manufacturing index showed a decline as the index fell to 20, down from 30 and below estimates of 22.
Looking ahead, the economic calendar today will see the release of the U.S. conference board's consumer confidence data. Economists expect consumer confidence to slip to 128.2 following the previous month's increase to 129.5. This is later followed by pending home sales data which is expected to post a 0.4% decline after rising 3.5% previously.
EURUSD intra-day analysis
EURUSD (1.1871): The EURUSD closed with a doji candlestick pattern on the daily session yesterday. Price action was seen consolidating above the 1.1843 - 1.1822 level of support which indicates further upside in price. On the 4-hour chart, the EURUSD is likely to break the consolidation to the upside with the potential bull flag pattern. Immediate resistance at 1.1920 is likely to be the near term upside target in price. Alternately, in the event that EURUSD fails to break higher, we could expect price action to continue trading flat above the support level.
USDJPY intra-day analysis
USDJPY (113.22): The USDJPY continues to trade flat with yesterday's session closing with a doji pattern once again. Price initially opened lower but the U.S. dollar quickly recovered to the fill gap but only to close flat on the day. Yesterday's doji marks a third consecutive day of trading flat. On the 4-hour chart time frame, USDJPY is likely to find support near the 113.00 level. Establishing support at this level could potentially indicate further upside in price. However, USDJPY will need to breakout above the previous highs posted near 113.60 in order to post further gains.
NZDUSD intra-day analysis
NZDUSD (0.7052): The New Zealand dollar managed to consolidate above the 0.7023 level. After breaking out higher above this level, price action briefly dipped to establish support. The current bullish momentum is expected to push NZDUSD to the upside as it approaches the next key resistance level of 0.7062. Price action could either continue to the upside on a successful breakout above this resistance level. Alternately, a reversal here could see price turning flat and trading within the range.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.