28 April, 2017
Monetary policy was left unchanged at yesterday's ECB meeting as widely expected, but ECB President Mario Draghi drove home the point that the central bank will continue its focus on maintaining the monthly bond purchase program. Although no major decisions were announced at this month's meeting, Draghi managed to talk down the euro which slipped as price rallied briefly to intraday session highs of 1.0932 before giving up the gains to close the day on a weaker note. Besides the ECB meeting, earlier in the day the Bank of Japan's monetary policy meeting was also held which saw no changes to interest rates or the QQE purchases. BoJ officials gave a somewhat upbeat assessment of the economy while slightly lowering the inflation forecasts. Looking ahead, today's advance GDP numbers from the U.S., UK, and Canada will be the key market events to look forward to.
EURUSD intra-day analysis
EURUSD (1.0865): The EURUSD has found support at 1.0863 - 1.0854 and this could see a minor attempt at a price to push higher. However, as long as the previous high is not breached, we can expect to see some flat price action. A breakout above 1.0941 high and the support at 1.0854 will be required for the next leg of the move. To the downside, the next main support is seen at 1.0750 - 1.0740, whereas to the upside, 1.1000 remains a key price level of interest that can be targeted.
USDJPY intra-day analysis
USDJPY (111.12): USDJPY is seen consolidating above the support level 111.00 where prices are being held steady. A breakdown below 111.00 could, however, spell trouble as a decline to 109.50 is quite likely. Price action closed with an inside bar in yesterday's session which could signify a potential break out in the near term. To the upside, strong resistance is seen at 112.00 - 111.97 which will need to be breached to ascertain further upside in prices.
GBPUSD intra-day analysis
GBPUSD (1.2907): The British pound managed to post some gains yesterday as we see price action attempting to challenge the resistance level at 1.2900. A breakout above 1.2900 will put GBPUSD on the path to test the upside targets at 1.3000 and 1.3200. But also note that the 4-hour Stochastics is showing a bearish divergence which opens the risk of a downside correction towards 1.2600 if the immediate support at 1.2800 fails to hold prices.
Gold prices have been slightly softer this week due mainly to a rebound in the US Dollar. Despite heavily delayed US news flow, due to the ongoing US...
The latest Japanese inflation data did little to inspire hope in a change-of-course for BOJ policy anytime soon. Core inflation, which strips out energy...
Following the drop in US stock indices at the end of last year, there was quite a bit of press talk about a potential recession. But that has gone by the wayside now that the Dow managed...
The latest revised GDP numbers from Japan showed that the economy advanced faster than previously expected. The data on the final reading...
The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day...
The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..
The US dollar managed to stem the strong declines after developments from Washington...
The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...
The US dollar extended declines strongly for another day as economic data...