Analytics and trading signals for beginners. How to trade EUR/USD on March 3? Analysis of Tuesday. Getting ready for Wednesday

Trading 02 Mar 2021 Commentaire »

Hourly chart of the EUR/USD pair

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The EUR/USD pair turned up and started the upward correction on Tuesday, which we all had been waiting for from the very beginning of the week. Sellers did not find more strength for the pair's succeeding decline. And the reasons for the pair's sell-off are clearly over. Although it cannot be said that there were initially a lot of them. In the past few days, there have been several macroeconomic and fundamental factors that could contribute to the dollar's growth. At the same time, none of them can be accurately called a factor that influenced the pair's movement. That is, maybe all these factors provoked the dollar's growth, or maybe none of them, and we have witnessed a banal technical correction. The main thing is different. Now the pair has begun to correct, and this correction may allow a downward trend line. As usual, there are a lot of options here. The end of the correction round can be determined by the downward reversal of the MACD indicator, but this does not mean that it will not be followed by a second round of correction. Therefore, we would say that tomorrow the probability of the price moving up and down is approximately the same. Since there is no trend line at the moment, both buy and sell signals can be processed. In our last article, we advised you to sell the pair if a new sell signal from MACD is generated, but such a signal was not generated over the past day.

The EU inflation report was published on Tuesday, which turned out to be slightly worse than traders expected. More precisely, this judgment concerns only core inflation, the usual consumer price index came out unchanged in comparison with the previous month. Nevertheless, we can assume that this report provided some assistance to buyers. Moreover, the time when the report was released and the time of when the upward movement had started coincide. But the report turned out to be weaker than forecasts, so it should have caused the euro to fall. Instead, we saw another round of growth...

The European Union and America is set to publish indexes of business activity in the service sectors. We also have the ADP on changes in the number of employed workers in the private sector in America, which is considered the second most important report on the state of the labor market after NonFarm Payrolls. Thus, in the morning, the index value above 44.7 could theoretically help the euro continue its growth. The more this value is exceeded, the greater the chances of growth. In the afternoon, the ADP report should exceed 170,000, and the ISM index - 58.7, in order for traders to start buying the US dollar again.

Possible scenarios on March 3:

1) Long positions have lost their relevance at the moment, but the situation is confusing and ambiguous. The upward movement may continue on Wednesday, but now a new buy signal from the MACD indicator is required to open long positions. The target is near the 1.2132 level or at a distance of 40-50 points from the entry point.

2) You can also consider trading bearish, but this will also require a signal from the MACD indicator during the day. The closer to the zero level such a signal is formed, the more chances for it to be worked out. The targets are also located at a distance of 40-50 points from the entry point. When a clear signal forms and around 15-20 points worth of profit is gained, we recommend setting Stop Loss to breakeven.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners in the Forex market should remember that every trade cannot be profitable. Developing a clear strategy and money management are the keys to success in trading over a long period of time.

The material has been provided by InstaForex Company - www.instaforex.com

Forecast and trading signals for GBP/USD on March 3. COT report. Analysis of Tuesday. Recommendations for Wednesday

Trading 02 Mar 2021 Commentaire »

GBP/USD 1H

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The GBP/USD pair was trading rather chaotic on Tuesday. Yesterday, we marked the 1.3903 level as a support level, from which a rebound can be made. However, in practice, the bears managed to overcome this level at the European trading session, but unfortunately their strength dried up. We recommended selling the pair if this level is overcome, however, after forming a signal, the pair was able to go down by only about 20 points. After that, the pound/dollar pair turned to the upside and began a new round of upward movement, which continues at this time. We did not recommend buying the pair on the rebound from the 1.3903 level, therefore, its reverse overcoming should not have resulted in opening long positions. In general, one might say that the bears keep the initiative in their hands. Recall that the pound has been rising for a very long time, and during these five months (this is only the very last round of the upward trend), there was practically no serious correction. Therefore, the downward movement is still more preferable. A rebound from one of the two most important lines of the Ichimoku indicator - Kijun-sen or Senkou Span B - can provoke a new round of downward movement. Therefore, we recommend that you be especially careful around these lines.

GBP/USD 15M

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The lower linear regression channel is turning to the upside on the 15-minute timeframe, which signals a possible reversal of the trend in the short term. However, as can be clearly seen in the chart above, buyers have two serious obstacles, which they need to overcome in order for the upward movement to continue.

No reports have been released in the UK to date. America also had a completely empty news calendar. So nothing influenced the pair's movement during the day. We now continue to draw your attention to two factors. The first is a strong increase in the money supply in the United States, which can cause a regular drop in the dollar throughout 2021. The second is the need for a stronger downward correction, both against a 5-month upward trend and against a 12-month one.

The UK Services PMI for February is due on Wednesday. At the end of January, this indicator rose to 49.7 points, which is only slightly below the level of 50.0, below which the negative trend in the industry remains. Thus, if this indicator rises above the level of 50, this may support buyers of the pound, and the pair will more easily overcome the Kijun-sen and Senkou Span B lines. Also, the ISM PMI will be published in the afternoon, which can also affect the dollar and all the pairs in which it is present. However, we are only talking about a strong decline in this indicator, in this case the pound/dollar pair may continue to grow. If the value of the ISM index is higher than the forecast or approximately the same, then traders may not particularly react to it. The ADP report is unlikely to be considered by the markets.

We have two trading ideas for March 3:

1) Bulls have released the initiative, but the bears have not yet managed to take the pair too far from the 2.5-year highs. Thus, the upward movement can resume at any time, despite the exit of quotes from the channel. We believe that it will be possible to buy the pair again if the price settles above the Senkou Span B line (1.4007) or the Kijun-sen line (1.4016) while aiming for the 1.4080 level. Take Profit in this case can be up to 50 points.

2) Tuesday was very difficult for the sellers and they let go of the initiative within the day. So now they need to rebound off the Senkou Span B or Kijun-sen lines, or get the pair to settle below them after they have previously gone up. In this case, you are advised to sell the pair while aiming for the 1.3903 level. Take Profit in this case can be up to 80 points.

Forecast and trading signals for EUR/USD

COT report

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The GBP/USD pair rose by 150 points during the last reporting week (February 16-22). The last two Commitment of Traders (COT) reports have clearly signaled an increase in bullish sentiment among the "non-commercial" group of traders. Therefore, in general, the mood of the major players and what was happening in the market for the pair had coincided. Non-commercial traders opened a meager number of new contracts during the last reporting week. Only 1,000 Buy-contracts (longs) and 1,200 Sell-contracts (short). Thus, the net position for this group of traders has not changed, as well as the total number of open contracts. Consequently, there shouldn't have been any major changes in the market. Nevertheless, the pound continued to sharply rise, so we return to the hypothesis that the demand for the pound remains relatively high, but the high supply of the US dollar plays a big role in strengthening the pound, which is depreciating as a result. The COT reports do not take into account supply and demand for the dollar, therefore, if they significantly change in volumes, then this or that currency may move without correlating with COT reports for it. We see approximately the same picture for the pound. The first indicator does not show an unambiguous bullish sentiment all the time that is shown in the chart. The green and red lines constantly intersect and change the direction of movement, which indicates the lack of a clear strategy among professional traders. But the pound continued to steadily grow all this time.

Explanations for illustrations:

Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one.

Support and resistance areas are areas from which the price has repeatedly rebounded off.

Yellow lines are trend lines, trend channels and any other technical patterns.

Indicator 1 on the COT charts is the size of the net position of each category of traders.

Indicator 2 on the COT charts is the size of the net position for the "non-commercial" group.

The material has been provided by InstaForex Company - www.instaforex.com

Forecast and trading signals for EUR/USD on March 3. COT report. Analysis of Tuesday. Recommendations for Wednesday

Trading 02 Mar 2021 Commentaire »

EUR/USD 1H

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The euro/dollar pair spent some time near the support area of 1.2032-1.2042 on the hourly timeframe on March 2. Thus, there were hopes that an unsuccessful attempt to overcome this area would provoke an upward movement. However, instead, the bears continued to put pressure on the pair, which led to an even greater decline for the quotes, to the extreme level of 1.2004. In fact, the psychological level of 1.2000 was reached, from which the rebound occurred. Thus, the upward correction against the movement, which lasted nonstop for three days, has nevertheless begun. Now it's aiming for the Kijun-sen and Senkou Span B lines of the Ichimoku indicator. A rebound from any of them can provoke the resumption of the downward movement. Although, as we have already discussed in the fundamental articles, there are now few compelling reasons for strengthening the dollar even further. Despite the fact that this currency has been depreciating for almost a year, there is no fundamental reason for forming a new downward trend now. Therefore, the upward movement is more likely to resume. In yesterday's article, we advised you to sell the pair if the price surpasses the 1.2032-1.2042 area. Such a signal was generated, but it brought no more than 10 points of profit, because an upward movement already began from the nearest target of 1.2004. You were advised to buy the pair when the price rebounds from the 1.2032-1.2042 area. As a result, a rebound did not occur from this area, however, the pair settled above this area, which can also be considered a buy signal. The targets are the two main lines of the Ichimoku indicator.

EUR/USD 15M

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Both linear regression channels are pointing to the downside on the 15-minute timeframe. Thus, in the short term, the downward trend continues. The chart clearly shows that sellers could not overcome the area of 1.2032-1.2042 three times, there were no false breakouts of this area, but in the end they still settled below it. And in the afternoon, the bulls already managed to overcome this area, so now it is more preferable to move up, especially after the pair fell without recoil for three days, without any good reason.

Traders could only pay attention to the report on the consumer price index in the European Union. However, as is often the case in recent years, there was no special reaction to the macroeconomic statistics. To be more precise, there was no reaction at all. The euro continued to fall in price during the European trading session. Although formally, this can be considered a reaction, since the main indicator of inflation decreased from 1.4% y/y to 1.1% y/y. However, we are now inclined to believe that the movement of the last few days was not unambiguously associated with the US macroeconomic reports from last Friday. Most likely, a whole set of factors, including both technical and fundamental, played a role.

The European Union will publish the index of business activity in the service sector for February, which, according to analysts, may remain below the level of 50.0. Also, representatives of the European Central Bank Weidmann, Panetta and Schnabel will make speeches in the European Union. Meanwhile, the value of the ADP report on changes in the number of people employed in the private sector of the economy will also be announced in America on Wednesday. Recall that the market ignored all of the latest ADP reports, so there is no reason to assume that traders will work it out. Most likely, we will see a purely technical movement from the pair.

We have two trading ideas for March 3:

1) Bulls released the pair to level 20, and only around it did they realize and began to attack. Since the price settled above the area of 1.2032-1.2042, then buying the pair is relevant for this signal, and you can aim for the Senkou Span B (1.2101) and Kijun-sen (1.2116) lines. Take Profit in this case can be up to 50 points. When overcoming the Kijun-sen line, you should stay in long positions with targets at 1.2145 and 1.2190.

2) Bears held the initiative in the market for three days, but now it is time for a correction. So now you are advised to open short positions in case of a rebound from the Kijun-sen (1.2116) or Senkou Span B (1.2101) lines, while aiming for the support area of 1.2032-1.2042 and the support level of 1.2008. Take Profit in this case can be up to 90 points.

Forecast and trading signals for GBP/USD

COT report

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The EUR/USD pair rose by 30 points during the last reporting week (February 16-22). In recent weeks, we have pushed for a continuation of the long-term upward trend. This is partly supported by the latest Commitment of Traders (COT) reports. Over the past two weeks, the mood of large traders has not significantly changed, and when the report was released, the number of open long positions among professional traders exceeded the number of open short positions three times. Thus, on the face of a bullish mood. The latest COT report did not show any major changes either. A group of non-commercial traders opened 6,500 Buy-contracts (longs) and Sell-contracts (shorts) during the reporting week. Thus, the net position of this group of traders did not change in any way, and the mood did not become more bullish or more bearish. However, for the third week in a row, the first indicator in the chart has signaled the unchanged sentiment of non-commercial traders (who, we recall, are the engine of the foreign exchange market). The green and red lines did not rise or fall during these three weeks. Thus, the major players took a wait-and-see attitude, as it were. But the days when the pair collapsed (Thursday and Friday of this week) were not included in the new COT report. Thus, since the beginning of September last year, major players have been aiming for a downward trend, but global fundamental factors prevent them from starting it. We have already mentioned global fundamental factors more than once, it all boils down to a huge increase in the money supply in the United States in 2020.

Explanations for illustrations:

Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one.

Support and resistance areas are areas from which the price has repeatedly rebounded off.

Yellow lines are trend lines, trend channels and any other technical patterns.

Indicator 1 on the COT charts is the size of the net position of each category of traders.

Indicator 2 on the COT charts is the size of the net position for the "non-commercial" group.

The material has been provided by InstaForex Company - www.instaforex.com

EUR/USD: dollar still feels like a fish in water, euro weakens in a hostile environment

Trading 02 Mar 2021 Commentaire »

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The greenback continues to squeeze the euro as America appears to take the lead in the pace of recovery

In addition, the sell-off in the Treasury market, which stirred up the key US stock indices last week, noticeably slowed down, but did not stop.

Investors remain concerned that rising Treasury yields and rising inflationary pressures could destabilize the stock market, especially in light of the expected huge budget spending as part of the stimulus package proposed by US President Joe Biden.

The increase in the yield of US government bonds has traditionally supported the dollar: the higher the real interest rates in the United States, the more attractive the national currency becomes in the eyes of investors.

On Tuesday, the USD index reached almost its highest level in a month, rising above 91.39 points.

The dollar received support from strong reports on the US that were published the day before. According to the ISM, the index of business activity in the manufacturing sector of the country rose to 60.8 points in February from 58.7 points recorded in the previous month. The value of the indicator was the highest in the last three years.

"The U.S. economy will continue to recover from the COVID-19 pandemic this year," said Thomas Barkin, head of the Richmond Fed.

According to him, vaccination against COVID-19, delayed consumer demand, a high level of savings of the population and the prospect of further financial assistance from the state suggest that the national economy is ready for a very healthy spring and summer.

The euro weakened against the dollar on Monday, even despite the upward revision of the indicators of business activity in the manufacturing sector of the eurozone for February - from 57.7 to 57.8 points. The EUR/USD pair continued to decline on Tuesday and updated four-week lows.

Investors seem to be leaning toward the U.S. economy's better chance of a solid recovery thanks to a successful vaccination program and a $1.9 trillion stimulus package.

Traders also drew attention to the differences in the reaction to the rise in bond yields from the European Central Bank and the Federal Reserve.

The US central bank believes that this is a good sign, while its European counterpart sounded the alarm, thereby increasing pressure on the single currency.

While ECB Governing Council member Francois Villeroy de Galo said the central bank should take retaliatory measures, Richmond Fed Governor Thomas Barkin said the jump in yields reflected an adjustment in economic growth and inflation forecasts.

"The widening spread between European and US government bond yields is likely to continue to put pressure on the euro-dollar exchange rate this week," Societe Generale analysts said.

"Expectations that the US economy will grow at a faster pace than the European one this year, thanks to the more successful spread of COVID-19 vaccines and the Joe Biden administration's fiscal stimulus, are reflected in bond yields. Therefore, there is no doubt that the momentum is in favor of the dollar and against the euro, " they said.

"EUR/USD has undermined the upward trend at 1.2042 and is now targeting the September high at 1.2014. It covers short-term support at 1.1945 (23.6% Fibonacci retracement level from March 2020 gain). A close below 1.1945 would mean a deeper drawdown to 1.1750. Meanwhile, attempts to grow will face serious resistance in the areas of 1.2085-1.2135 and 1.2243 (last week's high)," strategists at Commerzbank believe.

The material has been provided by InstaForex Company - www.instaforex.com

EUR/USD. « Castle in the sand » or hazy perspectives of dollar bulls

Trading 02 Mar 2021 Commentaire »

The euro-dollar pair tested the 19th figure, updating the almost one-month price low. In early February, the EUR/USD bears similarly tried to go below the psychologically important target of 1.2000, but failed. However, this time the sellers were waiting for failure: as soon as the price pushed through the support level, buyers became more active for the pair, which returned the euro to the area of the 20th price level. And yet, in the first half of the day, the pair was still dominated by bearish sentiment, although in my opinion, there were no good reasons for a large-scale dollar rally.

By and large, the dollar is growing only on the difference in the approaches of the representatives of the Federal Reserve and the European Central Bank regarding the growth of government bond yields (US and EU, respectively). This bubble has been inflating for the second week – and if last week geopolitical factors also played a role in strengthening the greenback, today traders only track the dynamics of bond yields through the prism of relevant comments from representatives of the Fed and the ECB.

Looking ahead, take note that if we consider short-term time periods, then the dollar will probably still show itself here. But if we talk about the medium-term and (especially) long-term perspective, then the situation does not look so clear.

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So, according to the general opinion of experts, the US currency is growing mainly due to an increase in the yield of treasuries against the background of a decline in the stock market. For example, the yield on 10-year US government bonds reached 1.403%-1.530% - the highest values since January 2020, when the US and China signed an agreement on the first phase of a trade deal. Just a few weeks remained before the start of the coronavirus crisis, and the markets managed to win back optimism about a new stage in relations between America and China. By the way, then the EUR/USD pair fell by more than 200 points – from 1.1070 to 1.0830. To date, government bond yields are rising for other reasons, but the safe-haven dollar has been, strengthening its position throughout the market.

It is noteworthy that the yield of European bonds is also growing, but the ECB's reaction to this fact is radically different from the Fed's reaction to the increase in the yield of treasuries. European Central Bank Vice President Luis de Guindos, in an interview with Portuguese journalists, said that the regulator is ready to resort to recalibrating incentive programs, including PEPP (emergency asset purchase program). According to him, the ECB is able to maneuver and is ready to take measures "in response to an undesirable increase in bond yields." A similar position was voiced by ECB President Christine Lagarde, announcing the use of specific countermeasures. She also expressed concern about the jump in government bond yields, adding that the ECB intends to use its tools to "prevent their further growth."

In turn, the Fed reacted much more restrained to the growth in the yield of treasuries. Commenting on the latest trends, Fed Chairman Jerome Powell only said that this situation has developed against the background of expectations of an increase in inflation. At the same time, he expressed confidence that inflation in the foreseeable future will not grow so much that it may cause concern on the part of the US central bank. At the same time, none of the members of the Fed hinted at a possible targeting of the yield curve of government bonds.

Such a contrast in the approaches of the Fed and the ECB was not in favor of the single currency – the very aggressive rhetoric of the representatives of the ECB against the background of a restrained and optimistic position of the Fed created a certain advantage for US securities over European bonds. This fact contributed to the weakening of the single currency against the greenback.

It is obvious that such factors can not serve as a basis for the reversal of the EUR/USD trend. The dollar certainly has an advantage in the moment, especially against the background of dovish comments from ECB representatives. But in the context of the medium-term perspective (and even more so long-term), it will be difficult for dollar bulls to keep their positions, relying only on the current situation with US debt securities. This "house of cards" is very vulnerable – for example, a disappointing report on Nonfarm (the publication of which is scheduled for Friday) can unsettle dollar bulls. Or if Powell (whose speech is expected on Thursday) looks at the growth of treasury yields from a different angle, at least indirectly hinting about targeting. Moreover, one scenario does not exclude the second.

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In other words, the dollar bulls were able to develop a large-scale correction on rather shaky fundamental factors. Here, at least, it is worth recalling that both the January and December Nonfarm came out in the red zone, falling short of the forecast values, and Powell, during his speech to Congress, admitted that the growth of the US economy slowed significantly after a powerful spurt last summer. Here you can also recall the rhetoric of other representatives of the Fed (in particular, Brainard), the vague dynamics of inflation, and so on, and so on.

Thus, in my opinion, the strengthening of the greenback is short-term. For a week and a half, the demand for the US currency has been fueled by various fundamental factors, but their impact is limited. From the current positions, we can consider long positions with 1.2110 as the first target – this is the Tenkan-sen line on the daily chart. The next intermediate resistance level is located on the upper border of the Kumo cloud on D1, while the main resistance level (the medium-term growth target) is located slightly higher - it is around 1.2200 (the upper line of the Bollinger Bands on the same timeframe).

The material has been provided by InstaForex Company - www.instaforex.com

German Unemployment Unexpectedly Climbs In February

Trading 02 Mar 2021 Commentaire »

Germany's unemployment rose in February, defying expectations for a decline, mainly due to the return of lockdown measures to battle the coronavirus pandemic that has severely hurt economic activity. The number of unemployed grew by a seasonally adjusted 9,000 persons from January to 2.752 million, latest data from the Federal Labor Agency showed Tuesday.

Economists had forecast a decline of 13,000. In January, the figure dropped by 37,000 persons.

The latest increase in unemployment was the first since June last year. The seasonally adjusted jobless rate was 6.0 percent, same as in January. That matched economists' expectations. "Short-time working [Kurzarbeit] continues to secure employment on a large scale and prevents unemployment," Federal Labor Agency Chief Detlef Scheele said.

"Individual sectors are feeling the effects of the lockdown, but overall employment is recovering."

Germany was among the major countries to restore lockdown measures in November amid a resurgence in the coronavirus infections across Europe. German media reports suggested on Tuesday that Chancellor Angela Merkel is likely to extend the current lockdown until March 28 over fears that more aggressive strains of the virus are spreading fast. The Federal Labor Agency said around 2.39 million people benefited from short-time working in December, under the government's Kurzarbeit scheme to prompt employers to retain jobs. The number of employees benefiting from the Kurzarbeit scheme had peaked at 6 million in April. Thereafter it eased before rising in November as lockdown restrictions returned. "Despite the small increase, this morning's headline numbers suggest that the German labour market is still getting through the crisis relatively well," ING economist Carsten Brzeski said. "However, the rising number of short-time workers, as well as the longer-term impact from the ongoing second lockdown and a high risk of insolvencies in 2021, clearly argue against too much optimism."

Earlier on Tuesday, Destatis reported that retail sales decreased for a second straight month and at a faster than expected pace in January.

Retail sales fell 4.5 percent month-on-month, which was worse than the 0.3 percent decline economists had expected. In December, sales decreased 9.1 percent.

Sales dropped 8.7 percent year-on-year, while economists had forecast a 1.3 percent gain. In December, sales grew 2.8 percent.

The latest annual decline was the first since April last year, when sales fell 5.6 percent.

These results can be explained by the second COVID-19 lockdown, which led to a partial retail closure starting on December 16, 2020, Destatis said.


The material has been provided by InstaForex Company - www.instaforex.com

*Canadian Real Gross Domestic Product Edged Up 0.1% In December

Trading 02 Mar 2021 Commentaire »

Canadian Real Gross Domestic Product Edged Up 0.1% In December


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*Canadian Real Gross Domestic Product Grew 2.3% In The Fourth Quarter Of 2020

Trading 02 Mar 2021 Commentaire »

Canadian Real Gross Domestic Product Grew 2.3% In The Fourth Quarter Of 2020


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March 2, 2021 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 02 Mar 2021 Commentaire »

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Recently, the GBPUSD pair looked overbought while consolidating sideways around the price-levels of 1.3700.

Sideway movement with slight bullish tendency was recently demonstrated while approaching these price levels around 1.3700-1.3750.

Thats's why, Bearish pullback was recently expressed. However, the GBP/USD pair has failed to maintain sufficient bearish momentum.

Instead, Another temporary bullish movement was expressed above the previous WEEKLY High (1.3700).

Further upside movement was expected towards the upper limit of the current movement channel around 1.4100-1.4150 where bearish rejection and a possible SELL Entry are expected to be present especially with the recent overbuying status of the pair.

Short-term outlook can turn into bearish if only the GBP/USD pair could break below and maintain movement below 1.3900 which corresponds to a recent prominent KeyZone.

If so, a quick bearish decline towards 1.3400 would be expected.

The material has been provided by InstaForex Company - www.instaforex.com

March 2, 2021 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 02 Mar 2021 Commentaire »

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Recently, the EURUSD pair looked overbought while approaching the price levels of 1.2250.

That's why, conservative traders were advised to look either for SELL Positions around the previous price levels at 1.2330 (150% Fibonacci Level) in the previous article.

Recently, Bearish closure and persistence below 1.2160 was needed to abort the ongoing bullish momentum. This allowed the recent bearish movement to pursue towards 1.2050 which failed to offer sufficient bullish pressure.

The price zone around 1.2000 provided temporary bullish SUPPORT for the EURUSD. However, lack of bullish momentum was recently demonstrated. That's why, we were waiting for a bearish continuation Pattern.

However, a recent bullish spike has pursued above 1.2150 - 1.2175 (backside of the broken channel limit) where bearish rejection was previously anticipated.

However, Further bullish movement was expressed to pursue towards 1.2250 which applied significant bearish pressure on the pair.

Further bearish decline is expected towards 1.2000 and 1.1960 as long as bearish persistence is maintained below 1.2150.

The material has been provided by InstaForex Company - www.instaforex.com