The UK will be reporting on its labor market data today
|The markets were trading muted on Monday with the U.S. market closed on account of a bank holiday. The USD index was seen easing back on the day, extending the declines for the third consecutive session.
In the early Asian session, the Reserve Bank of Australia released the monetary policy meeting minutes. The day ahead will see the Swiss trade balance figures coming out. Forecasts show a modest increase to 2.24 billion. The eurozone's current balance figures will follow.
The UK will be reporting on its labor market data today. The average earnings index is expected to rise slightly higher to 3.5%, up from 3.4% previously. The unemployment rate is expected to remain steady at 4.0%.
Germany's ZEW economic sentiment index is due later and is expected to show the index easing to -14.1 from -15.0 previously.
The overnight session will see the producer prices index data for the fourth quarter coming out of New Zealand.
EURUSD Intraday Analysis
EURUSD (1.1294): The EURUSD currency pair advanced on Monday to test the previously established resistance level at 1.1327. Price action was seen easing back after testing this level. While the currency pair remains range-bound within 1.1327 and 1.1256, a breakout from this level could trigger the next direction in the trend. The bias remains to the upside at the moment. However, if the euro slips further, we could expect to see price retesting the lower support at 1.1256. To the upside, a breakout above 1.1327 could signal further gains that could test the next main resistance at 1.1437.
USDJPY Intraday Analysis
USDJPY (110.64): The USDJPY has remained muted as price action is trading within the range of 111.21 and 109.74. With no clear breakout from this range, we expect price action to be consolidating within this level. The breached resistance at 109.78 remains a key level of interest in case of the downside. Establishing support here could keep the bias to the upside. Meanwhile, with the target level of 111.21 not being tested yet, there is the potential that the currency pair will maintain the upside momentum.
XAUUSD Intraday Analysis
XAUUSD (1323.56): Gold has advanced gains for the third consecutive daily session, as price tested intraday highs of 1326 before easing back. With the resistance level at 1321.27 being cleared, the current retracement could see a retest of the breached resistance level. Forming support at 132127 could signal a potential rebound to this upside. This would also validate the bullish flag pattern on the daily chart. The upside is at 1347 which remains the next main target. If gold prices fail to hold the support at 1321.27, then we could expect to see the downside prevailing with a correction toward the 1300 level of support.
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