Forex trading plan for Feb. 6
EUR/USD is expected to consolidate in the 1.1500/1.1300 area as the market players await news from the US (NFP at 12:30 GMT on Friday) and Greece (here we regrettably don’t have a time schedule). The pressure on Greece to accept responsibilities on the terms of repaying its debt is increasing. The nation will likely find a way to reach an agreement with its creditors, but before that more stress is very likely. Greek Finance Minister Yanis Varoufakis met with German counterpart Wolfgang Schäuble, and as Schäuble put it, they’ve agreed to disagree. Above the 1.1500 resistance is at 1.1600 and 1.1655. The break below 1.1300 will send EUR/USD towards 1.1100.
As for the US labor market data, on balance it’s expected to be good. At the same time, the positive impact on USD may be limited as the US economic growth has slowed down in Q4. GBP/USD is on the strong foot on good data from the UK and generally lower figures seen in the US this week. Pound may rise to 1.5480. The Bank of England has left its monetary policy unchanged. GBP/USD faces resistance at 1.5270 and 1.5350. Support is in the 1.5125/10 area and then at 1.5033. EUR/GBP is vulnerable for decline towards 0.7400.
USD/JPY may continue being sold on the upside in the area between 117.90 and 118.30 and bought on the downside in the 117.00 area. AUD/USD is trying to base above 0.7700. Above the neckline of the inversed H&S at 0.7857 Aussie will get a chance to rise to the 0.800 area. The Reserve Bank of Australia will release monetary policy statement early on Friday. The statement will include the RBA’s view economic conditions and inflation.