The forex market braces for a potentially volatile week as a series of high-impact economic events are set to unfold. Each release bears weight and could significantly influence currency volatility and trading strategies.
Here’s what traders need to be aware of:
| Date | Event | Potential Impact on Currencies |
|---|---|---|
| Feb 26, 2024 | US New Home Sales, ECB President Speaks | USD, EUR |
| Feb 27, 2024 | US Durable Goods, Consumer Confidence, etc. | USD |
| Feb 28, 2024 | Australia CPI, USA Prelim GDP, G20 Meetings | AUD, USD |
| Feb 29, 2024 | Multinational Economic Data, G20 Meetings | EUR, CAD, USD and others |
| Mar 1, 2024 | China PMIs, Europe CPI, USA ISM | AUD, EUR, USD |
Key Economic Events
February 26, 2024
US New Home Sales
This indicator provides insights into the demand for residential real estate and the overall economic momentum. A higher number tends to boost the USD as it indicates a robust economy.
ECB President Lagarde Speaks
Speeches by central bank leaders are closely watched for policy clues. Any dovish or hawkish signals from Lagarde can instantly sway the EUR and related pairs such as EUR/USD and GBP/USD.
February 27, 2024
A slew of US data releases, from Durable Goods Orders to Consumer Confidence, is due. Durable goods orders reflect business investment health, hence impacting the USD value on strength or weakness. Similarly, consumer confidence levels can sway market sentiment, affecting USD movements.
February 28, 2024
Australia’s CPI data will impact the AUD, as higher inflation could signal potential rate hikes. Concurrently, the USA Prelim GDP offers a crucial GDP assessment, with significant deviations from forecasts potentially causing USD volatility. The G20 Meetings are also set to occur, which can result in announcements influencing the global markets, including forex.
February 29, 2024
A packed day for economic releases, with German Prelim CPI, Canada’s GDP, and USA Core PCE Price Index among others. Inflation data can result in immediate pricing recalibration, impacting EUR, CAD, and USD respectively. G20 Meetings continue, and US FOMC Member Mester’s remarks could provide further USD trading cues.
March 1, 2024
China leads with its Manufacturing PMIs, which can affect the AUD/USD due to Australia-China trade connections. Europe’s CPI data will be pivotal for the EUR, while USA ISM Manufacturing PMI and Revised UoM Consumer Sentiment have the potential to move the USD.
Market Analysis and Predictions
EUR/USD Faces Resistance at 1.0835
EUR/USD hovers near the resistance level at 1.0835. A break could lead to an upward trajectory, but the current sentiment leans toward selling, targeting lower support levels.
The EUR/USD pair is expected to experience choppy price action with a bearish bias as long as it faces key resistance at 1.0835. With the potential downside of 20-40 pips, traders are advised to sell at the pivot point of 1.0835, targeting levels of 1.0805 and 1.0790.
GBP/USD Under Pressure
GBP/USD may exhume bearish undertones as it contends with the downward pressure. Traders may look for sell opportunities at the pivot of 1.2685, with pullback targets at 1.2645 and 1.2630.
The GBP/USD pair is under pressure and recommended for selling with an entry price (pivot) set at 1.2685. The RSI indicates a mixed to bearish scenario, with a potential drop of 25-35 pips, targeting levels of 1.2645 and 1.2630.
Crude Oil (WTI) Trending Downwards
Crude oil prices are under scrutiny with key energy summits on the horizon. WTI traders eyeing sell positions around the pivot of 76.70, hoping to capitalize on declining prices.
Intraday trading analysis suggests that Crude Oil (WTI) is likely to continue its downward trend. With the RSI advocating for further downside, traders are advised to sell at the pivot point of 76.70, targeting levels of 75.50 and 75.10.
Gold’s Bullish Bias Continues
Gold shows resilience with a bullish outlook, making buying around 2027.00 potentially lucrative with the RSI favoring an uptick towards 2041 and 2047.00 resistance levels.
Disclaimer:
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.
