13.03.201712:04 Forex Analysis & Reviews: Trading plan for 13/03/2017

Long-term review

Trading plan for 13/03/2017:

On Monday 13th of March, there is not much on the calendar as most of global investors are in the wait mode for the super busy Wednesday. Nevertheless, there is one important event on the agenda today: ECB President Mario Draghi speech in Frankfurt, scheduled for 01:30 pm GMT.

EUR/GBP analysis for 13/03/2017:

Draghi's speech in Frankfurt might be in the center of the focus for all global investors as it might be interesting to see whether Draghi will reiterate his remarks from Thursday's ECB press conference. Those remarks were rather hawkish and the main conclusion was that the ECB does not think to cut the interest rates any further for now. We will see if this tone will change during today's speech at G20 meeting.

Let's now take a look at the EUR/GBP technical picture in the daily time frame. The price violated the golden trend line last week and now the bull camp is trying to test the technical resistance at the level of 0.8855. Another set of hawkish remarks from Draghi might be perceived by market participants as bullish for the Euro and the resistance level might be tested rather soon, just after the successful bounce from the nearest technical support at the level of 0.8722.

Exchange Rates 13.03.2017 analysis

Market snapshot - DAX in rising wedge formation

The German stock index is currently forming a Rising Wedge formation, which might suggest the uptrend might be temporary terminated and the corrective cycle might start. This scenario will be even more probable, when the level of 11886 which is a larger time frame support will be violated again. Then the road towards the next support at the level of 11694 will be open and the golden channel trend line might get tested as well. Nevertheless, as long as the technical support at the level of 11425 is not clearly violated, the bias remains to the upside.

Exchange Rates 13.03.2017 analysis

Market snapshot - SP500 bounces from support

The U.S. index SP500 (SPY) has bounced from the technical support at the level of 235.17 and this level might now be considered as a higher low in an overall bullish trend. However, the market conditions do not look oversold that much yet, so as long as the swing high at the level of 240.22 is not clearly violated, the correction might evolve into more complex and time-consuming pattern.

Market snapshot - Copper breaks put from channel

After the establishing a bottom at the level of 2.638, the price of copper had managed to break out of the dashed blue parallel channel and now is heading towards the next technical resistance at the level of 2.762. Moreover, it is quite possible, that if momentum will be stong, then new highs will be made above the level of 2.814.

Exchange Rates 13.03.2017 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Sebastian Seliga,
Analytical expert of InstaForex
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