Trading recommendations for starters of EUR/USD and GBP/USD on March 3, 2021
The US dollar declined on the wave of sales, after strengthening for quite some time. Nevertheless, it still maintains its position relative to its competitors in the market.
In terms of yesterday’s economic calendar, Europe published its preliminary inflation data, which was expected to rise from 0.9% to 1.0%. But as a result, inflation remained unchanged at 0.9%, which positively affected Euro’s value.
In turn, Britain and the United States did not release its statistics.
What happened on the trading chart?
During a sharp decline from last week’s high of 1.2242, the EUR/USD pair reached an important psychological level of 1.2000, where a stop occurred on a natural basis. This resulted in a price rebound towards the level of 1.2100, which was quite expected in the market.
The trading recommendation about the price rebound from the level of 1.2000 completely coincided. So, traders received profit of 50-90 pips (50-90 dollars with a transaction volume of 1 lot).
The GBP/USD pair continues to direct market participants below the psychological level of 1.3950/1.4000/1.4050, which repeatedly serve as a resistance.
If the price moves below this area, sellers will have more chances to further weaken the pound’s rate.
Trading recommendations for EUR/USD and GBP/USD on March 3, 2021
Today, European producer price index will be published, which is expected to increase from 0.8% to 1.2%. If so, it can locally support the rate of the euro.
10:00 Universal time – Producer Price Index
In the afternoon, the United States will release its ADP employment report for January, where the forecasted growth is 177 thousand. This is very good and may positively affect the US dollar’s value.
14:45 Universal time – ADP report
Analyzing the trading chart of the EUR/USD pair, it was observed that there was a formation of price consolidation in the range of 1.2075-1.2095, which made speculators very interested. The price, concentrating in one place, can lead to a local surge in activity at the time a particular border breaks down.
– Buying a pair is recommended if the price holds above the level of 1.2100, with the prospect of moving to the range of 1.2130-1.2150.
– Selling a pair is recommended if the price holds below the level of 1.2070, with the prospect of moving to the range of 1.2050-1.2010.
As for the trading chart of the GBP/USD pair, it shows that the quote is attempting to rebound again from the psychological level. However, the main flow of short positions will occur after yesterday’s low of 1.3858 is updated. Subsequently, we will consider the main pivot point set at the next level of 1.3750.
Traders will consider an alternative scenario of the market development if the price holds above 1.4050 level in the H4 time frame.
The material has been provided by InstaForex Company – www.instaforex.com