Trading plan for 21/02/2017:
On Tuesday 21st of February, there will be many economic releases during the European and American trading sessions and the main focus will be on the Inflation Report Hearings in the UK and Flash Manufacturing PMI data release from the US.
EUR/USD analysis for 21/02/2017:
Today's PMI Manufacturing data are expected to drop just slightly to the level of 54.7 points from 55.0 a month ago, which means that another round of support for the manufacturing rebound is expected in today's data. If the forecast is correct, the index will inch up to a 29-month high and provide more evidence that this part of the economy is again posting moderate growth on a consistent basis.
Let's take a look at the EUR/USD technical picture at the H4 time frame. The price is getting closer to the technical support at the level of 1.0519 and this support might get violated as the larger time frame trend is still bearish. Any break out below the level of 1.0519 will open the road towards the next technical support at the level of 1.0452.
GBP/USD analysis for 21/02/2017:
The bank of England Governor Mark Carney and other policy makers will testify to the Treasury Select Committee today from 10:00 am GMT. Markets expect Carney to answer the questions currently that are currently important for UK economy, like wages, household debt and inflation. Probably some rate hike questions too with Brexit the ever present casting a shadow, so higher volatility is expected.
According to the technical picture at the H4 time frame, the GBP/USD pair might finally break out of the triangle. Any violation of the level of 1.2381 will open the road towards the levels of 1.2347 and 1.2251. On the other hand, any violation of the level of 1.2523 will open the road towards the level of 1.2581 and 1.2700.
Market snapshot: Crude Oil breaking out of the range on Tuesday 21st February 2017
After the last week EIA stockpiles data ( better than expected) the Crude Oil prices were trading inside of the trading range between the levels of 52.70 and 53.70.Today the price is clearly breaking out from the range and it is heading towards the next technical resistance at the level of 54.32. If this level is violated, then the next technical resistance is seen at the level of 55.23.
