Trading plan for February 19
By Kira Iukhtenko
US Dollar turned to be rather strong on Thursday despite all the Fed’s attempts to limit the upside.The greenback was supported by the labor market figures: number of unemployment claims came out below the forecast.On Friday watch the US CPI – according to the official forecast, the base index accelerated to 0.2%. The US currency has potential for more upside.
EUR/USD tests the local support at 1.1100, but we need a fix below this mark to find a reason to sell. Next strong support is seen at 1.1040 (55-week MA). Meanwhile, GBP/USD is strengthening ahead of the EU meeting results on Brussels. Will they reach an agreement? Our forecast is “yes”, but it will take a couple of months to formulate the decision. The nervousness will last and keep GBP under selling pressure. We expect the 1.3500 mark to be hit in the coming months. However, in a short term the pair could hit 1.4500 on the upbeat expectations.