Trading plan for March 23
By Kira Iukhtenko
Market sentiment turned negative after the Brussels events on Tuesday. EUR/USD dipped to 1.1185, but note that the pullbacks are bought. Euro zone’s economic calendar is rather light, so the market will be driven mostly by the US news in the coming days. From the technical viewpoint, I’d rather not be buying euro at the current levels. Major support is seen at 1.1200 and we need a daily close lower to change the view to bearish.
GBP/USD is developing a bearish move as well. Weak UK inflation figures on Tuesday strengthened the selling pressure on the pair. There are no important releases to watch tomorrow, while on Thursday we will be watching the retail sales figures. Break below 1.4250 (50% Fibo) opens the way to 1.4150 in the coming days.
Dips in AUD/USD are also liquidated quickly – the pair recovered back above 0.7600 on Tuesday. Nexttargetliesat 0.7670. Thepairisnotoverbought. Meanwhile, USD/JPY broke from the lower boundary of the consolidative range. We expect the bearish trend to be extended with the medium term target at 110.00.