Daily market review 27 March

11:00 ** IFO Business Climate – March (Germany)
11:00 ** IFO – Current Assessment – March (Germany)
11:00 ** IFO – Expectations – March (Germany)
Further growth of these indicators is able to provide the necessary support for the euro. It is noteworthy that the indicator of the business environment conditions, as well as the indicator of the current situation assessment, are at the maximum values. Accordingly, the absence of their decrease may become an additional bullish factor for the euro.
12:20 ** Member of the Executive Board of the ECB Sabine Lautenschläger Speaks РMarch (Eurozone)
15:00 ** ECB’s Peter Praet Speaks – March (Eurozone)
19:30 * ECB’s Jens Weidmann Speaks – March (Eurozone)
During the comments noted above by the representatives of the ECB, the volatility of euro trading may increase.
Our goals 1,0800-1,0820 are reached and the range is broken up. Further, we keep our purchases to the level of 1,1000-1,1050. Support our forecast was the decision of the US Congress on Friday night (March 24) to postpone the voting on the health care system. Even now, when a decision is made, no matter what it is, the dollar will continue to decline. Recent events too openly demonstrate the weakness of the ruling person in his office, which will provoke an outflow of investments from a reliable US dollar.
Since the beginning of the trading week, the US dollar index sank 0.63% (as of 6:30 GMT).
For this currency pair, the last forecast is almost fulfilled, since the sales target is at 110.00-109.40. After reaching this range, we would adopt a conservative scenario and wait for further input from the US and Japan to decide whether to sell, or buy back a pair. From the beginning of our sales, the USDJPY decline already amounted to 4.2%.
The news background is calm, and only the US dollar is the most active. We adhere to our strategy of buying GBPUSD, it continues to make profit from the beginning of the week. Technically, recall, on the chart for a week formed a reversal candlestick configuration “absorption”. It is now being worked on. The goals for “long” positions for the near future lie in the range of 1.2700-1.3000.

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