Following a slow start on Monday which saw the US and the UK markets closed, the economic calendar picks up pace today. The US personal consumption expenditure, income and spending data are on the cards with the broad data expected to show a pickup in spending and income.
The US dollar is currently seen pushing higher and a positive string of economic releases could help to keep the current recovery in the greenback intact. The markets were mostly mixed yesterday despite a slow trading and lack of any clear fundamentals to act as a catalyst.
Besides the data from the US the regional GDP numbers from the eurozone will be coming out. France GDP and preliminary inflation figures from Germany will help shape expectations for the euro ahead of this week’s flash inflation estimates that will be key for the common currency.
EURUSD intraday analysis
EURUSD (1.1126): The euro attempted to rally but price action turned weaker by end of day. The EURUSD is currently seen pushing lower and it is likely that the support level at $1.1100 will be tested in the near term.
The currency pair is likely to see some bounce at this support level but could remain subdued below $1.1200. A break out below $1.1100 is required for EURUSD to target $1.1000 which could happen towards Friday’s non-farm payrolls release.
GBPUSD intraday analysis
GBPUSD (1.2819): The British pound managed to stabilize following last Friday’s strong declines that sent the cable to test $1.2800 support.
The modest recovery yesterday however failed to offer any bounce as price reverted to the support level once again which is being tested. The near-term bias remains flat in GBPUSD unless we see a strong break down below $1.2800. A better than expected PCE data today could help price to break down leaving the declines exposed towards $1.2600 support level which is the next downside target.
XAUUSD intraday analysis
XAUUSD (1268.00): Gold prices continued to post modest gains with price rising to a fresh one-month high earlier today at $1270.47.
The next main resistance level is seen at $1274.00 which could be tested over the remainder of the week. In the near term, the current pullback could see gold prices retest the support at $1263.00. This level had previously acted as resistance in the past two weeks. Therefore, there is a strong chance that the newly developed support could hold prices. A break down below $1263.00 could however push gold prices lower, invalidating the bullish outlook to $1274.00 with prices instead likely to test $1250.00 support.