Eurostat revised the eurozone's economic growth for Q4 2022 and downgraded the GDP reading to zero from a quarter ago. Besides, the seasonally adjusted GDP for Q4 2022 rose by 1.8% on year, a downtick below the expected 1.9% increase.
In a separate report, employment in the US private sector grew more than expected which proves a healthy labor market. The ADP payrolls processor reported that the US private sector created 242K jobs in February. The employment growth for January was upgraded to 119K jobs, much stronger than the 106K jobs originally reported for the previous month. Economists had projected 200K new jobs in January.
Overview of technical charts on March 8Yesterday, EUR/USD first got trapped in a range and later in the day had an upward retracement relative to a bearish move recorded on March 7. Such developments indicate that the euro is oversold in shorter timeframes.
GBP/USD followed the same scenario as EUR/USD. The early price action was a downward move of more than 150 pips. Then, the market got stuck sideways. At the moment, interim support is detected at 1.1800.
As usual, on Thursdays, traders closely monitor a weekly update on US unemployment claims that are expected to go up last week. This is a negative factor for the US labor market.
Details of economic calendar
Continuing unemployment claims could have increased from 1,655 mln to 1,659 mln
Initial jobless claims could have grown from 190K to 195K
Schedule
US unemployment claims are due at 16:30 UTC
Trading plan for EUR/USD on March 9We can suppose that the ongoing sideways trading in the range of 40 pips means a process of accumulating trading forces. Eventually, the instrument will gain certain momentum and escape from one of the borders of the trading range. This price action will point in a further direction.
The bullish scenario will come into play in case the price settles above 1.0580. Alternatively, traders will consider the bearish scenario if the price settles below 1.0520.
A sharp fall in GBP/USD generated a technical signal about overbought market conditions. This created a range-bound market. The next possible move is an upward retracement after the recent downward momentum. This price action could enable a partial recovery of the pound sterling. However, if the market neglects the overbought signal and the price settles below 1.1800 on the 4-hour chart, GBP/USD could slide down through inertia.
The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: the opening price, closing price, intraday high and low.
Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.
Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset's price in the future.
The up/down arrows are landmarks of the possible price direction in the future.