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Tuesday, March 5, 2013

EUR/USD. Forecast for March 5, 2013

Today data on PMI Services in February in Spain, Italy, the Euro Area, and the US is published. It is expected to fell from 47.0 to 45.9 in Spain and from 43.9 to 43.6in Italy, in the eurozone it is forecast to be flat (47.3). Data on Retail Sales in the Euro Area in January (issued at 14:00 GMT+4) may provide reasons for optimism. It is expected to be 0.3% against -0.9%. US ISM Non-Manufacturing is forecast to be 55.0 against 55.2.
From the technical point of view, in order to continue growing the price should consolidate above the level of conjunction of trendline and the level of Fibonacci on the daily chart 1.3060 and indicator lines on the H4 (1.3065). In this case the first target 1.3114, the level of Fibonacci 236%, opens. If the support 1.3010 is broken on the H4, bearish target 1.297, support of the trendline on the daily chart, opens. If the price consolidates under it, further downward movement to the level of Fibonacci 1.2925 on the H4 is possible.


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