03.03.201710:19 Forex Analysis & Reviews: Trading plan for 03/03/2017

Trading plan for 03/03/2017:

On Friday 3rd of March 2017, there is plenty of news released during the European and American trading sessions and the global investors will pay attention to PMI Services data from Eurozone, PMI Services data from the United kingdom, the ISM Non-Manufacturing data from the US and last, but not least Federal Reserve Chairperson Janet Yellen's speech.

EUR/USD analysis for 03/03/2017:

The PMI Services data are scheduled for release at 09:00 am GMT and the market participants are expecting a steady, unchanged numbers from the Eurozone. The expected PMI for the whole EU should be released at the level of 56.6 points, which is still above level of 50 points which separates expansion from contraction.

Let's take a look at the EUR/USD technical picture at the H1 time frame. The price had bounced from technical support at the level of 1.0493 and now the bulls are trying to break out above the intraday resistance at the level of 1.0527. A better than expected PMI data (bigger than 56.6 points) might help to rally higher towards the next intraday resistance at the level of 1.0545, but this rally might be short-lived despite the oversold market conditions. The main reason for that is a speech from Federal Reserve Chairperson Janet Yellen later on the day which will possibly be hawkish again and this, in turn, will push the EUR/USD pair back to low levels.

GBP/USD analysis for 03/03/2017:

The last set of PMI data from the UK, the PMI Services data is scheduled for release at 09:30 am GMT. Up to this date, the overall PMI data from the United Kingdom (for manufacturing and construction sectors of the economy) are holding above the level of 50 points, so no indication of any recession or contraction is present. Today's data are about to confirm this trend in the UK economy.

Let's now take a look at the GBP/USD technical picture at the H1 time frame. The price has been trying to bounce from 61%Fibo at the level of 1.2261, but so far no avail. The bears have managed to make another lower low at the level of 1.2240 and now the market is positioning itself ahead of the data release. Better than expected data might help to bounce once again towards the level of 1.2345, but any worse than expected data will speed up the sell-off towards the next support at the level of 1.2140 (78%Fibo level).

Market snapshot: Gold backs off from the 61%Fibo resistance

The price of Gold was heavily sold yesterday after the bulls did not manage to close the daily candle above 61%Fibo at the level of 1,255. The price had clearly violated the golden trend line dynamic support and now is trading around the technical support at the level of 1,225. The market still looks overbought and the next technical support for the price is at the level of 1,216. Only a clear and sustained break out above the technical resistance at the level of 1,236 would invalidate this bearish bias.