Forex trading plan for March 18
EUR/USD rose above 1.0600. US dollar was affected by news that American housing starts fell by 17% in February. Resistance is at 1.0700 and 1.0830. Support is at 1.0570, 1.0500 and 1.0450 ahead of 1.0300. The focus is on the Federal Reserve’s policy announcement at 18:00 GMT on Wednesday and press conference at 18:30 GMT.
GBP/USD met resistance in the 1.4850 area and slid to 1.4750. The UK will release labor market data and the Bank of England’s meeting minutes at 09:30 GMT. Support is at 1.4700 and 1.4650. Resistance is at 1.4900 and 1.4950. Bears will dominate as long as the pair is below 1.4900.
USD/JPY is in 121.50/10 area. The Bank of Japan left its policy unchanged in line with expectations having to impact on the pair. Dollar/yen is consolidating ahead of the Fed meeting. Narrow range is a sign that a volatile move is coming. Support is at 120.50, 120.25 and 120.00. A hawkish Fed will make USD test 122.00 and 122.90.
AUD/USD is consolidating around 0.7650. The minutes of the Reserve Bank of Australia March meeting showed that the central bank still thinks that Aussie is too high regarding the fundamentals. As a result, traders will keep expecting that the RBA will further ease its policy. On the hourly chart we see the pair consolidating within a triangle. Support is at 0.7610 and a break below this level will bring the prices down towards 0.7500. Resistance is at 0.7680 ahead of the downtrend resistance line in the 0.7750 area.