Forex trading plan for March 12
EUR/USD is hurt by the falling bond yields in the euro area because of the ECB’s QE. The 1.0560 area may offer some support. Corrections will face resistance at 1.0650. Further support is at 1.0500. Data from the US due on Thursday (retails sales, unemployment claims) is expected to improve. This could increase pressure on the euro.
USD/JPY has formed a doji with a long upper shadow on Tuesday unable to close above the psychological level of 122.00 which is now acting as resistance ahead of 124.00. Negative risk sentiment is holding the bulls. Decline below 120.80 will make the pair fall to 120.00 and probably to 119.40.
GBP/USD is affected by the news about the decline in the UK manufacturing & industrial production. Pound is vulnerable for decline to long-term support in the 1.4815 area. The level of 1.5030 will now form resistance. Watch for comments from the Bank of England’s Governor Mark Carney: in his recent speeches he tended to reassure the markets.
AUD/USD eyes 0.7500 – the bears would like to touch this level. Resistance is in the 0.7720/00 area. Watch Australian labor market data release during the Asian session.