Forex trading plan for Jan. 21
US dollar is on the strong foot versus all currencies, but Swiss franc and British pound. Wednesday will also be full of different events from the US President’s Obama speech and the start of the World Economic Forum in Davos to the important data releases.
EUR/USD failed to recover on Tuesday even despite good German data. Traders await the ECB’s meeting on Thursday. Below 1.1560 the currency will tests levels under 1.15. Resistance is at 1.1660, 1.1700 and 1.1750.
USD/JPY recovered to the Ichimoku Cloud’s top at 118.75. A close above this level can bring the pair to 119.80 and 120.00. A failure will lead the pair to support is at 117.90 and then at 115.55. Watch the results of the Bank of Japan’s meeting tomorrow morning and Governor Kuroda’s press conference.
GBP/USD was once again helped by the strong support in the 1.5100/1.5050 area. Tomorrow watch the release of the UK employment data and the Bank of England’s meeting minutes (09:30 GMT). We still prefer selling the pound on the upside as British central bank may sound dovish on the Back of the falling oil prices.
We are short on EUR/GBP and EUR/JPY. NZD/USD may once again test 0.7600.