Sorry, you need to enable JavaScript to visit this website.

EUR/USD forex signal - U.S. Revised GDP - 28 Feb 2018

You are here

Signal Details
Entry Price: 
1.2260
Take Profit: 
1.2075
Stop Loss: 
1.2300
Direction: 
Sell
Result: 
Loss
How we trade
5/5 of 5 ratings

The U.S. second revised GDP estimates report will be coming out today at 13:30 GMT. According to the economists polled, the U.S. economy is expected to show rising at a rate of 2.5% in the fourth quarter of 2017. This marks a slight downward revision from the first estimates which showed a 2.6% increase.

The data is unlikely to have a major impact on the markets. However a stronger than expected surprise revision in either direction could potentially influence the markets strongly. The U.S. dollar was seen strengthening this week, riding on the back of what seemed to be a hawkish testimony from the new Fed Chairman, Jerome Powell.

The markets are currently pricing in a March rate hike which has been the reason behind the renewed strength in the USD. However, the economic indicators from the U.S. have remained broadly mixed. Over the week, the durable goods orders report pulled back, after rising strongly in the previous month.

New home sales report released earlier in the week also showed a mixed picture as the number of new home sales rose less than expected and also at a weaker pace compared to the numbers from December 2017. With the economic indicators broadly mixed, there are some risks to the U.S. dollar as expectations for a rate hike can slip just as easily.

Ahead of the revised GDP estimates, data from the Eurozone will cover the monthly flash inflation estimates. Headline CPI is expected to slip to 1.2% compared to 1.3% while core CPI is expected to remain steady at 1.0%.

Based on the above, the forex signal of the day is EURUSD. Following the breakdown below the support level at 1.2330, the currency pair has consolidated into a bearish flag pattern. With price breaking to the downside off 1.2260, we expect the trend to continue lower.

Therefore, for us it is ideal to short EURUSD around 1.2260, targeting 1.2075 with stops placed above 1.2300 as we expect the downside trend to resume.

forex signal eurusd 28 feb 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.