Trading plan for 30/03/2017

Trading plan for 30/03/2017:

The US Dollar is modestly strengthening at the Asian session. EUR/USD stays just above yesterday's minimum and near 1.0750. USD/JPY was approaching, in the short term, key resistance is at 111.70. GBP/USD since the official launch of the Brexit procedure remains weak, but the Pound is today the only currency that is minimally gaining against the Dollar. On Wall Street modest gains, but the Asian indexes clearly down, Shanghai Composite and Nikkei 225 lose about 1 percent. Copper is still cheap, but WTI crude oil continues to rise, which after defending $47 a barrel on Monday, today is priced at over $49.5. No important macro data was published at night.

On Thursday 30th of March, the financial market participants will keep an eye on the news from the US like Final GDP, Unemployment Claims, and speeches from FED members Robert Kaplan and William Dudley.

EUR/USD analysis for 30/03/2017:

All important news are scheduled for release at 12:30 pm GMT (Final GDP and Unemployment Claims). New filings for unemployment benefits remain close to multi-decade lows, suggesting that the economy will continue to mint new jobs at a healthy pace in the near term. The market participants expect a slight decline this week from 258k to 244k. The GDP output for the 4th quarter is expected at the level of 2.0% and all in all remains sluggish. That is enough to keep the US out of recession territory, but a roughly 2% pace of growth raises questions about the wisdom of additional interest rate hikes this year, which the Federal Reserve has recently signaled as a likely scenario.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market had filled the gap at the level of 1.0824 and now is trading close to the important support at the level of 1.0713. The overall conditions at this time frame start to look oversold, so any worse than expected news from the US might start a corrective move to the upside. This means the level of 1.0824 would be tested again from the downside.

Market snapshot: GPB/USD is in tight range after start of Brexit

No impressive moves had been made in this pair after yesterday's start of the Brexit procedure and the market still trades in a tight horizontal zone between the levels of 1.2377 - 1.2476. Due to the oversold market conditions, there is a chance of an upside breakout above the level of 1.2476 and if this scenario will happen, then the next resistance is seen at the level of 1.2538. On the other hand, any violation of the level of 1.2377 will expose the next technical support at the level of 1.2323 to the test.