Forex Analysis & Reviews: 03.03.2015

03.03.2015 04:45 AM

Review and trading recommendations on EUR/USD for March 03, 2015

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EUR/USD

REVIEW. Italy and Spain Manufacturing PMI printed an optimistic views on the economies. Spain Manufacturing PMI rise has been the sharpest since April 2007. The seasonally adjusted Spain PMI posted 54.2 in February, down from 54.7 in January, but it still signalling a marked monthly improvement in operating conditions. Italy's manufacturers recorded a solid rise in output in February, the fastest since June 2014. Italy's Manufacturing PMI is registered above the critical 50.0 mark for the first time in five months in February. At 51.9, up from January’s 49.9, the index was at its highest level since July 2014. Providing a boost to the sector was a rise in incoming new orders, the first in five months. Overall, the eurozone manufacturing maintains modest growth in February. Final eurozone Manufacturing PMI came in at 51.0 in February (Flash: 51.1, January Final: 51.0). Jobs growth was seen in Ireland, Italy and Spain, but further cuts were recorded in France and Austria. The euro area annual inflation is expected to be -0.3% in February 2015, up from -0.6% in January, according to a flash estimate from the Eurostat, the statistical office of the European Union.

Upcoming economic events

Today, traders eye German retail sales and Spanish unemployment change. US Federal Reserve Chair Yellen's speech is due.

Technical view

Ahead of these data, the USD is trading higher against the euro at the Asian session. From the technical view, the broken support base turned to a resistance zone between 1.1260 and 1.1280. Again, we recommend using every rise to sell with targets at 1.1100, 1.0970, and 1.0930. The panic will be triggered below 1.1150. In case, a h4 candle closes below 1.1150, bears can challenge mentioned lower targets. Selling is below 1.1150. The prices are closed and trading far below hourly moving averages. Until prices close below 1.1310, use every rise to sell. The weekly resistance is found between 1.1310 and 1.1350. The trading pattern is framed between 1.1280 and 1.1175. Forgot buying, until the price closes above 1.1280.
Resistance: 1.1200, 1.1240, 1.1260.

Support: 1.1177,1.1150, 1.0970.

Trade: selling below 1.1150.