Breaking forecast 03/01/2018
EURUSD: Keep selling.
We continue selling the euro from 1.2255, but the stop is relocated to the breakeven. Target is 1.2100.
There are potential surprises, and a complete reversal may be seen.
In this case:
Buy the the euro from 1.2360, stop at 1.2315, target 1.2560.
Technically: the rate broke through an significant level of 1.2205 down (the level of a week’s order) — and gave an indicator for a downward turn. However, while the achievements are very modest — the maximum downward movement to just 1.2183 — everything could be a false breakdown.
On Wednesday, a report on US GDP — the second reading for the 4th quarter — no noticeable changes. There is no new impulse.
Today, March 1, there is a new important event: at 12:30 London time, an PCE inflation report on the US will be published. At 2:00 PM London time the head of the Fed will speak for the second time in the US Congress.