All you need in Forex
story by: TradingDoc
Thursday 2 March Day Close Analysis: GBP , EUR take a tumble
03/03/2017
Thursday 2 March Day Close Analysis: GBP , EUR take a tumble

Thursday 2  March Day close analysis, GBPUSD and EURUSD on the back foot again as the USD demand is in control. President Trumps address to the nation has had a positive business sentiment.   Dow peaks and drops to its current level.  What next?  Expect profit taking? 

AtoZForex, 2 March –  After peaking to all time highs, there was a sell off  on the indices. ? It was not a good day for the GBP , EUR and AUD bulls. Could this be just profiting taking or part of a deeper pull back?

Thursday 2 March Day Close Analysis

EURUSD Day Close Analysis

As mentioned yesterday, EUR breached the 50% Fibonacci retracement zone, as the bears took control as the EUR closed strongly on the downside for the third day running. Trading bias on the daily time frames remains on the bearish side.

Current status from a technical perspective
EUR has tested the 1.0492 level twice and continues to trade in a range between 1.0632 and 1.0492 for the last nine (9) days, we can expect a break below the 1.0492 level in the coming days. From the indicators perspective very little change from yesterday. Both the daily 20sma and 100sma are sloping down with the 20sma below the 100sma.

Thursday 2 March Day Close Analysis: GBP , EUR take a tumble

Day Close for EURUSD H1 (click to zoom in)

Hourly Chart
Moving Averages
 – Both the 20sma and 100sma are sloping down with the 20sma below the 100sma.
MACD –MACD histogram and signal line are below the neutral line
RSI – RSI is below the 50 level.
Key levels –  Price continued to fall through the last three session , Asian, European and USA.  The dollar continues to strength and we can expect more of the same tomorrow. Bias is on the bearish side, with possibility of  a clear break below the 1.0492 level at the 38.2% Fibonacci retracement zone. Initial target at 1.0440 and a possible test of the 1.0395 level. 

GBPUSD Day Close Analysis

The GBP closed negatively for the fifth day running. The pair trade in narrow daily range with the overall bias remaining on the bearish side.

Current status from a technical perspective
There is nothing additional to add at this stage to our outlook yesterday With price now testing the custom 61.8% Fibonaaci zone.
We expect profit taking tomorrow in the near term and then continues to the downside to the strong support level of 1.2090 level. A move to the 1.1985 cannot be ruled out. On the Daily chart both the daily 20sma and 100sma are sloping down with the 20sma above the 100sma. Price is is below the two moving averages.

Thursday 2 March Day Close Analysis: GBP , EUR take a tumble

Day Close for GBPUSD H1 (click to zoom in) 

On the Hourly chart both the daily 20sma and 100sma are sloping down with the 20sma below the 100sma. Price is below the two moving averages.

Hourly Chart
Moving Averages
 – Both the 20sma and 100sma are sloping down. The 20sma is below the 100sma
MACD – MACD histogram and signal line are below the neutral level
RSI – RSI is below or just touching the 50 level 
Key levels –  Price Action is still choppy overall for this pair, bias remains bearish at the time of writing with a small correction expected. 

Please use correct risk and money management in line with your account size and draw down plan. These are not recommendations, you must carry out your own due diligence. 

Think we missed something? Let us know in the comments section below.

(32)

Share via Twitter Share via Facebook Share via LinkedIn Share via Google Plus