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ECB President, Draghi's Speech Stands Out Amid A Quiet Trading Session

Daily Forex Market Preview, 13/03/2017

The single currency is seen extending the gains from Friday's rally even as the ECB president Mario Draghi is slated to speak later today. The economic data today is quiet with only the eurozone industrial production numbers, and the U.S. Labor Market Conditions Index lined up.

In what could be a volatile week, traders will be looking forward to the central bank meetings and more importantly, the Fed's rate hike this Wednesday. For the common currency, risks come from everywhere, including this Wednesday's Dutch general elections.

Understandably, gold prices, which fell to 1200.00 support last week was seen bouncing off that level on Friday and could be supported to the upside by this week's economic and geopolitical events.

EURUSD intra-day analysis

EURUSD (1.0697): EURUSD is seen battling the 1.0700 resistance level at the time of writing and could possibly extend the gains towards 1.0750 in the near term. Any declines will see EURUSD test the lower support at 1.0600 which previously acted as resistance. Beyond this range, there are no further clues on which way the EURUSD will move, although there are strong inclinations for a downside dip in the single currency in the near term, unless the 1.0700 handle is breached strongly. In this case, expect price action to remain consolidating within 1.0700 and 1.0800.

USDJPY intra-day analysis

USDJPY (114.68): USDJPY is seen consolidating into the rising wedge pattern shown on the chart. The break of the downside, rising trend line could signal near-term declines that could test 114.00 - 113.78 support initially. Price action could then remain range bound within 115.40, the highs from 10 March and the mentioned support level. A break down below 113.78 is expected which will send the U.S. dollar lower towards 112.95 - 113.00 support level which could post a decent correction ahead of further gains to come in the near term.

XAUUSD intra-day analysis

XAUUSD (1207.87): Gold prices slipped below 1200.00 on Friday and managed to close bullish, after nearly six straight days of declines. Price action is expected to stay range bound within 1235 and 1200 levels with a break out from these levels to provide further continuation of the bias. The daily Stochastics is oversold and coinciding with the price at support could indicate near-term gains. On the 4-hour chart, expect prices to test 1220 - 1217 resistance level with the potential to test 1237 on a breakout above this minor resistance zone.