Dollar Looks To A New Week; OPEC Meeting In Focus
ORBEX | May 22, 2017 06:28AM ET
The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines. On Friday, the US dollar edged lower with no major economic events to report.
Oil prices were back in the limelight ahead of this week's OPEC meeting on Thursday, 25 May 2017. The OPEC leaders and Russia are widely expected to extend the production cut until March 2018. Oil prices closed at $50.33, rising 2% by Friday's close.
Looking ahead, economic data today is light which puts Fed members Harker and Kashkari's speeches in the limelight.
EUR/USD intraday analysis
EUR/USD (1.1192):Following the rally to 1.1200 on Friday, EUR/USD is looking a tad weaker although the price could very well stay range bound in the near term.
The lack of economic data today is likely to put the focus back to the politics from Washington which will put the EUR/USD at risk of further gains above 1.1200. To the downside, immediate support is seen at 1.1100 while further declines can be seen coming on a break down below 1.1100 with a move towards 1.1000. To the upside, support needs to be established at 1.1200 for further gains to be validated.
USD/JPY intraday analysis
USD/JPY (111.53):USD/JPY has been pushing higher since the open today, although price action is clearly pointing to a bearish flag pattern as seen on the 4-hour chart.
Resistance is seen likely to form at 112.00 and only above this level can we expect to see some upside gains. To the downside, a break down from the bearish flag pattern is essential at 110.79 which will push the USD/JPY lower towards the next immediate support at 109.50 and 109.00 levels.
XAU/USD intraday analysis
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XAU/USD (1252.33):Gold prices continue to consolidate near the 1250 handle following last week's rally towards 1265 highs.
The rising wedge pattern on the daily chart remains in play which could potentially signal a move lower towards 1200.00 potentially. In the near term, gold prices remain range bound within 1263 and 1250 levels and a break down below one of these levels is needed to push gold prices further.
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