• On Monday, the US dollar index jumped as concerns mounted that the latest series of US-China discussions may not yield a settlement before the March 1 deadline.
• The market is looking to hear BOE Mark Carney’s and Fed Chair Powell’s speeches.
• How to trade the EUR/USD and GBP/USD today?

EUR/USD – Double Bottom Pattern & Oversold RSI

The single currency weakens against the buck as traders sought shelter in safe-haven currencies. On Monday, the markets usually remained volatile on the back of high impact qualitative and quantitative fundamentals.

German Buba President Weidmann is due to deliver a speech titled “The role of the central bank in a modern economy – a European perspective” at the University of South Africa, in Pretoria at 08:20 (GMT).

ECOFIN Meetings – The Economic and Financial Affairs Council is the Eurozone’s broadest financial decision-making body. The council organizes the economic policies of the 28 member states, and their initiatives and decisions can have a widespread effect on the Eurozone’s economic health.

Why do traders care?
The Ecofin meetings present a chance for forex traders to take advantage of any volatility they investigate, as the value of the Euro could shoot up in the short term if investors think that any given policy will strengthen the currency.

Technically, the EUR/USD is trading around $1.1280 after placing a low near $1.1268. On the 3 hour chart, the pair has formed a tweezers bottom above a strong support level of $1.1270.

Above this, the EUR/USD is likely to continue trading higher until $1.1340. While the bullish breakout of $1.1340 may lead it towards $1.1365.

Daily Technical Levels
Support Resistance
1.1252 1.1315
1.1228 1.1354
1.1165 1.1417
Key Trading Level: 1.1291

EUR/USD – Trade Plan
The idea is to stay bullish above $1.1265 with a stop loss below $1.1235 and take profit at $1.1310 and $1.1345. While selling is preferred below $1.1250.

GBP/USD – BOE Mark Carney Speaks Today

The GBP/USD plunged to $1.2840 support area on Brexit uncertainty.

Today, the UK Prime Minister Theresa May will update MPs about fresh Brexit discussions as she continues to gain support for her deal.

She revisited Dublin and Brussels last week asking EU approval on revisions to the backstop – the “insurance” policy to avoid the return of visible Northern Ireland border controls. During the previous month, MPs voted for the PM to find options for the current backstop.

For now, all eyes remain on BOE Mark Carney but I’m afraid his agenda of speech isn’t specifically related to monetary policy or Brexit issue. Mark Carney is due to speak about the economic outlook and global trade tensions in London at 19:30 (GMT).

On the technical side, the pair holds above a support level of $1.2845. On the upper side, we can see a 20 period moving average which is providing strong resistance to the cable near $1.2920. A bullish breakout can lead the GBP/USD towards $1.2975.

Daily Technical Levels
Support Resistance
1.2823 1.2918
1.2787 1.2976
1.2692 1.307
Key Trading Level: 1.2881

GBP/USD – Trade Plan

It will be nice to trade sideways by selling at $1.2880 and buying at $1.2850 until a breakout occurs.

Stay tuned to FX Leaders for more updates!