Forex trading plan for Feb. 10
Strong US labor market figures released on Friday took the market by surprise. As a result, the EUR/USD and GBP/USD bullish recovery stopped dead. EUR/USD got rejected by resistance in the 1.1360 area. There will be some support at 1.1260, but we expect the euro to drift towards 1.1200 in the coming sessions. Watch French industrial production figures at 07:45 GMT on Tuesday. Greek parliament will vote on confidence to the government.
GBP/USD failed to close above 1.5300 on Friday and may test levels below 1.5100. Support is at 1.5033/00. Next bearish target is seen at 1.4815. The UK will release manufacturing production at 09:30 GMT on Tuesday (a slowdown from +0.7% to +0.3% is expected). Watch the January NIESR GDP Estimate at 15:00 GMT.
USD/JPY faced resistance in the 119.20 area and turned down aiming for support at 118.00 and 117.30.
AUD/USD has opened the week with a gap down, but then found support in the 0.7760 area and erased losses. Resistance is at 0.7850 and 0.7900. Support is at 0.7760 and 0.7720. Australia is scheduled to release January NAB Business Confidence tonight at 00:30 GMT. NZD/USD pushed higher on Monday, but holds below the 0.7445 resistance (38.2% Fibonacci). Next bullish target lies at 0.7520.
Note that China will release a bunch of important figures at 1:30 GMT: if inflation declines, the market will be waiting for more monetary stimulus. Such expectations may support the Australian and New Zealand dollars which are proxies for the optimism about Chinese economy.