Daily Forex Market Preview, 28/07/2017
The US dollar managed to pare losses, rising on the back of a better than expected durable goods orders report yesterday. Data from the commerce department showed that durable goods orders rose 6.5% on the month in June. This marked the quickest pace of increase in three years and beat estimates of a 3.8% increase.
The US dollar index briefly fell to a 13-month session low before managing to close the day with gains.
Looking ahead, traders will be watching the advance GDP report from the US today. According to the economists polled, the US GDP is expected to have increased 2.5% on the quarter, following a 1.4% increase in GDP in Q1. From the eurozone, flash GDP numbers from France and Spain are due while Germany will be reporting the preliminary inflation data for July.
EURUSD intraday analysis
EURUSD (1.1685): The EURUSD closed bearish yesterday after briefly reaching for a new 3-year high. The common currency fell following a brief gain in the US dollar index. Still, the declines are expected to be limited to the immediate support found at 1.635. Only a breach of this support will spell further weakness in the currency pair. The next main technical support sits at 1.1475 which could be tested in the short-term basis. Alternately, a reversal at 1.1635 will keep the EURUSD supported to the upside. But price action will need to push higher in order to maintain the steady pace of gains.
GBPUSD intraday analysis
GBPUSD (1.3079): The British pound rallied to a 10-month high yesterday before turning bearish. The daily chart shows the rising wedge pattern in play. However, support is seen at 1.3025 which needs to be breached for any downside to continue. In this case, GBPUSD could be seen posting strong declines with the next support seen only at 1.2656. On the 4-hour chart, following the strong declines, any pullback to the upside will be limited. Near-term support below 1.3025 is seen at 1.2818.
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USDJPY intraday analysis
USDJPY (111.13): The USDJPY continues to remain range bound within 111.77 and 110.80 levels of resistance and support. The consolidation has been continuing for the past four consecutive sessions. This implies a possible breakout from this range in the near term. To the upside, above 111.77 expect to see further bullish momentum push USDJPY towards 113.71, while to the downside, below 110.80, USDJPY could be seen posting declines to 109.58.
