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3 March Forex daily review

Sergiy Zlyvko
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On Monday, the dollar index closed the Friday’s fall by 76%. Positive reaction to the American statistics was delayed. The dollar strengthened against its competitors after the close of trading in Europe. Index of personal spending, the index of business activity in the manufacturing sector and the index of construction costs in the U.S. published much better than expected.

EURUSD fell on the U.S. session to 1.3725. U.S. dollar completely blocked the growth of the euro after inflation data for February. GBPUSD fell to 1.6655. According to the British pound, forces are currently balanced between buyers and sellers. Pound was returned to the lateral movement. Up-nascent trend from 1.6615 quickly extinguished. Daily Stochastic Oscillator on the daily chart (GBPUSD) crossed down (indicating a decline in the pound). There are not significant news scheduled for today. Investors’ attention is directed to the Ukraine, as geopolitical tensions in Ukraine triggered the fall in world stock markets and rising prices for oil, gold, the dollar and the yen. After the euro and the pound back to price levels on Thursday, we will consider them again to decline against the dollar. In the first half of the day the growth of the euro and pound is expected. Now the RBA will announce the decision, so AUD somewhere fail.

Bulls ignored data on the index of business activity in the manufacturing sector and the EU did not update the maximum on Monday. If the main scenario to shift down to the opening price, then we can assume that the price adhered the forecast throughout the day. There wasn’t strong reaction to the speech of M. Draghi. Statistics from the U.S. dollar pleased buyers by its values. After the close of trading in Europe, EURUSD fell to 1.3720.

Friday’s growth was blocked, important news today are is not planned. Technical analysis for the first half of the day expects the growth of the euro to 1.3755 level. From this level the fall to 1.3710 mark is discussed.

Before the closure of the European session, GBPUSD traded sideways above 1.6710 line. By the end of the day the pair fell by 50 pips to 1.6660. As a result, the other day Stochastic Oscillator gave a signal to sell the pound, so mid-term purchases should be abandoned. In Asian session, the pair updated intraday low at 1.6640. Indicators are in the negative area. This means that for the first half of the day we must expect the correction to yesterday’s fall. There is no significant news, nobody will interfere. We believe that a rollback to 1.6710 mark is ideal for Tuesday. British pound during the American session may again come under pressure as the market will start preparations for the Bank of England meeting.

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