Forex trading plan for March 2
By Kira Iukhtenko
US Dollar gained additional support on Tuesday after the unexpectedly strong US manufacturing PMI release. USD index keeps on rising above the 98 figure and we see space for more USD upside this week. Watch the ADP NFP and crude oil inventories figures on Wednesday.
EUR/USD is testing the 1.0850 support, despite the upeat euro zone’s labor market figures. Euro is expected to decline ahead of the ECB March 10th meeting. On Wednesday, pay attention to the euro zone’s PPI – more weakness is expected. We are targeting 1.0500 in the medium term.
As we expected, GBP/USD is moving to the downside. Sales were triggered by the weak manufacturing PMI. The pair attempted to recover above 1.4000 earlier in the day, but came under renewed bearish pressure. Next bearish target lies at 1.3830. Watch the UK construction PMI tomorrow (forecast – upbeat). We are targeting 1.3500 in the medium term as the Brexit topic will dominate the headlines in the coming weeks.
AUD/USD is trading slightly above the 0.7100 mark and has potential for more downside. Australia is scheduled to release Q4 GDP on Wednesday – growth is expected to have slowed to 0.5%. USD/JPY remains supported, but the greenback is still not too confident to break out of the sideways channel. We need a break above 114.00 to confirm the reversal.