Forex trading plan for March 4
Demand for the US Dollar weakened after the weak unemployment claims figures on Thursday. Block of labor market data on Friday is now in focus – these are the figures that will define the further market dynamics ahead of the Fed’s Mach 16 meeting. NFP are expected to come at 195K in February, while the average hourly earnings are forecasted to surprise to the downside. We expect USD to recover some ground ahead of the release.
EUR/USD has recovered above 1.0900, but remains in a bearish channel. Strong resistance lies at 1.0950, we expect a break lower from here on Friday. Strong support – local low at 1.0820.
GBP/USD is developing a bullish correction and has recovered above 1.4150.This is where 38.2% Fibonaccilies. The bullish momentum remains strong as of now. Daily close above 1.4100 will confirm and inverse “head-and-shoulders” formation.Support is seen at 1.4080 and 1.4040.
AUD/USD is developing a bullish trend. However, resistance at 0.7380/90 could limit the upside. USD/JPY turned down to 114.00. The US labor market figures could trigger a new wave of buying.