Forex trading plan for Feb. 25
EUR/USD is leaning to the downside. Support is at 1.1260 and 1.1200. Greece has revealed the list of reforms. According to the European Commission, this is a valid starting point. However, investors see now that Greek question won’t be solved soon, so upside potential for the euro is limited. The ECB president Mario Draghi will make speak on Wednesday at 16:30 GMT and may comment on monetary policy.
GBP/USD remains capped by the 1.5480 resistance (23.6% Fibo). Next resistance lies at 1.5589 and 1.5800, support – at 1.5370. The Bank of England’s Governor Carney said today UK inflation turn negative in the nearest future, but it’s expected to recover quickly. BOE notes stable wage growth. Carney will also speak tomorrow at 10:00 GMT. On Thursday watch the second Q4 GDP estimate (no changes expected).
USD/JPY keeps trading sideways. The pair rose above 119.40. This opens the way up to 119.60 and 120.00/25. Support is located at 118.33/27 and buyers should become active in case of decline to this point. Below 118.27 a decline towards 117.30 is possible.
Aussie dollar keeps on consolidating above the 0.7700 mark. However, the pair was once again rejected by resistance at 0.7850 on Monday. On Wednesday watch the release of China’s HSBC Flash Manufacturing PMI at 01:45 GMT.