Forex trading plan for March 5
EUR/USD has weakened to the levels just above 1.1100. The euro is feeling pressure ahead of the meeting of the European Central Bank on Thursday. Resistance is at 1.1215, 1.1270 and 1.1320. Further support is at 1.1050 and 1.1000.
GBP/USD has retraced 38.2% of the advance from January low to February high. The pair was rejected at the top of the daily Ichimoku Cloud and may fall to its bottom in the 1.5200 zone. Support is in the 1.5310 area (55-day MA). The Bank of England is expected to leave monetary policy unchanged.
USD/JPY failed to hold above 120.00 on Tuesday and may decline to 118.85/77 area where it should find more support. Resistance is in the 120.25/50 area. On Thursday watch US unemployment claims, factory orders and the speech of FOMC Member Williams.
AUD/USD is once again testing 0.7850 which corresponds with the long-term trend line resistance. Australia will release retail sales and trade balance data early on Thursday. Next resistance is at 0.7915. The expectations of RBA’s rate cut are pushed back, not dismissed, so Aussie will probably be limited on the upside. Support is at 0.7800 and 0.7750.