EUR / USD
On March 2, the EUR / USD pair added another 110 basis points and, therefore, continued to build the rising wave 1 as part of a new trend section. The unsuccessful attempt to break through the 127.2% Fibonacci level suggests the readiness of the euro / dollar instrument to build a bearish correctional wave 2. If this is true, then, given the impressive size of the first wave, wave 2 can also be very long. Inside wave 1, the internal wave structure is practically not visible, but wave 2 can get a pronounced 3-wave form.
Fundamental component:
The news background for the EUR / USD instrument on March 2 was not too strong. The business activity indexes in the Eurozone and America were supposed to answer the questions: has the recovery of the EU manufacturing sector begun and has the recession began in the US manufacturing sector? Let me remind you that the growth rates of production in the EU and the USA have been negative for several months.
However, business activity in this sector in the United States remained above the level of 50.0. It remained above this level in February. According to both Markit and ISM, there has been no decline in business activity in the US manufacturing sector. But in the eurozone, an increase in business activity was detected, but it still remained below 50.0, so this economic report did not have much effect.
The markets continued to invest in the Euro currency as if nothing had happened, not paying attention to economic data. Today, there will be a report on inflation in the European Union in the next hour, which, according to market expectations, should slow down to 1.2% y / y. However, the euro has already begun to decline, probably based on a wave or technical analysis.
A meeting of finance ministers and central bankers of the G7 countries will also take place today. On the agenda, there will be a discussion regarding the issue of stimulating the economy against the backdrop of the raging “coronavirus”. As a result of this meeting, a decision may be made to lower key rates in the EU, USA, and Great Britain. Although certain hints about such steps by the leading Central Banks have already been voiced.
General conclusions and recommendations:
The euro-dollar pair is supposedly continuing the construction of a new ascending section. Based on the current wave counting, wave 1 is supposedly completed. Thus, I recommend waiting for the assurance of the construction of wave 2 and buying an instrument with targets located near the level of 1.1180, which corresponds to 127.2% Fibonacci.
GBP / USD
On March 2, the GBP / USD pair lost about 70 more basis points and, thus, continued to build the alleged wave 3 or c, which can turn out to be very long and complex, given the size of wave 2 or b. On the other hand, an unsuccessful attempt to break through the Fibonacci level of 50.0% may lead to a departure of quotes from the lows reached, but in general, I expect the continuation of the decline in the quotes of the instrument.
Fundamental component:
The news background for the GBP / USD instrument on Monday was also not so strong. Nevertheless, the British pound reacted vigorously to economic data from the UK and the USA unlike the EUR / USD instrument. British business activity in the manufacturing sector declined slightly from 51.9 to 51.7, which allowed the US currency to continue to be in demand in the currency market.
However, business activity in America slowed down, so the decline in quotes of the instrument was restrained. At the same time, more and more attention of the market is turning to coronavirus, which continues to spread around the planet and slows down the global economy. The markets are also watching with interest the progress of negotiations on a trade deal between Britain and the EU, the rounds of which will take place every 2-3 weeks. Thus, there should be a lot of information in the near future.
General conclusions and recommendations:
The pound / dollar instrument has complicated the current wave marking, which now takes on a much more extended form. Thus, I recommend selling the instrument with targets located around the level of 1.2584 and 1.2369, which corresponds to 61.8% and 76.4% Fibonacci, after a successful attempt to break through the level of 50.0%.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
If you have an interest in any area of Forex Trading, this is where you want to be.
Global Fx Trading Group is a world leader in providing Fx services to individual traders, including: Unmatched funding programs, on-line education, virtual trading rooms, automation tools, robot building, and personal coaching.
The company was first established by Jeff Wecker, former member of the Chicago Board of Trade, with 25 years in the industry. Jeff has a keen understanding of the needs of Forex traders and those needs are our focus.
Please join our VIP Group while is still
FREE …
https://t.me/joinchat/JqsXFBKpyj3YS4bLWzT_rg
Our mission is simple: To enhance as many lives as we can through education and empowerment.
#theforexarmy #forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom
