The month of February saw markets make several instinctive moves as well as create opportunities for proper leveraging of fundamental releases. Despite being a leap-year, there wasn’t any real impact on price delivery in the course of the month. As we await the opportunities that lie ahead in the month of March, here are a few thoughts to consider.
GBPUSD – W1 Timeframe
GBPUSD is currently stalling in a consolidation move that could see prices shoot up to the resistance trendline, then followed by a proper bearish confirmation. This sentiment is sponsored by the confluence of the resistance trendline, supply zone, 200-period moving average resistance, and the Fibonacci retracement levels.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.23078
- Invalidation: 1.31568
EURCHF – W1 Timeframe
The overall trend on this weekly timeframe chart of EURCHF is clearly bearish, with a recent break below the previous low. Following this, I have plotted the Fibonacci retracement levels in order to identify my key areas for a reversal; the 76% and 88% being the prime levels I consider. The trendline resistance, supply zone, 50-period moving average, and the bearish array of the moving averages are my confluence for this sentiment.
Analyst’s Expectations:
- Direction: Bearish
- Target: 0.93824
- Invalidation: 0.96920
EURNZD – W1 Timeframe
EURNZD is currently retracing back to the previous high in a move that I consider to simply be a correction of the momentum that broke below the previous low. That said, I expect to see a completion of the correction move around the 76% and 88% Fibonacci levels. The confluence of resistance trendlines, supply zone, and the Fibonacci levels lend credence to my bearish sentiment in this case.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.76090
- Invalidation: 1.82956
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
