Daily Forex Market Preview, 22/01/2018

The U.S. dollar was seen closing with some gains on Friday, in the hope that Washington would pass the spending bill. Although it was cleared by the U.S. House, the bill stalled in the U.S. Senate. Late night talks over the weekend did not yield many results and lawmakers are expected to reach some agreement today.

The Euro was seen attempting to recover the losses on Friday but after rising to an intraday high of 1.2294, the currency pair gave up the gains and settled lower to close at 1.2223.

Looking ahead, the economic calendar is light today. The Eurogroup meetings are scheduled throughout the day while in the NY trading session, Canada will be releasing its wholesale sales data. Economists forecast an increase of 1.0% for the month.

EURUSD 22-01-2018 Intra-day analysis

EURUSD (1.2223): The Eurusd is seen consolidating near the 4-year highs as Friday’s attempts to recover failed. Price action as seen on the 4-hour chart shows the EURUSD seeking dynamic support off the median line. We expect a short term rebound off this level as EURUSD could remain range bound heading into Thursday’s ECB meeting. The upside gains are called near the current highs of 1.2282 level. Further gains can be expected only on a convincing close above this level. To the downside, the support at 1.2184 remains in focus and this could form the short-term range for the EURUSD.

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