Forex trading plan for Dec. 2
EUR/USD kept on consolidating below the 1.2500 mark on Monday, paying almost no attention to the mixed euro zone's PMI indices. On Tuesday watch Spain's unemployment change data and November PPI. ECB meeting on Thursday is in the central stage this week: many expect the central bank to announce QE. Note that the bearish trend has slowed in the recent weeks, giving a chance for a “diamond” formation on the daily chart. Id ECB disappoints with easing, a strong bullish correction will likely follow.
For a short time USD/JPY rose above 119.00. However, daily oscillators declined. Support is at 117.90 and 117.20. Only the decline below the latter will cause a fall to 116.10. The talk about Japanese elections may intensify on Tuesday with the official start of the election campaign.
GBP/USD retraced Friday’s decline returning above 1.5700. There’s scope for pound to rise to 1.5850/80 where the bulls will find resistance. Britain will release construction PMI at 09:30 GMT. Support is at 1.5690 ahead of 1.5590.
AUD/USD dipped to a new 4-year low on Monday on the Swiss gold referendum results, but has recovered towards 0.8500 later in the day. The pair is now forming a bullish engulfing candle on the daily chart. RBA will announce its policy decision on Tuesday. No changes expected, but the overall sentiment could become more bearish. In this case Aussie could come under a more intense selling pressure. Next strong support lies at 0.8370. On Tuesday you should also pay attention to the Australia's current account and building premits.