Currency Analyst since 2010

Forex trading plan for April 23

EUR/USD faces resistance in the 1.0775/1.0800 area created by the line connecting December and April highs. This together with concerns about Greece lets us think that the euro remains a sell. Support is at 1.0682, 1.0660 and 1.0640. Don’t miss the release of the euro area’s key manufacturing & services PMIs at 07:00-08:00 GMT. Slightly better readings are expected.

GBP/USD rose above last week’s highs testing 1.5080 to meet resistance provided by the daily Ichimoku and 55-day MA. Support is at 1.4860. The Bank of England’s meeting minutes released on Wednesday were regarded as a bit hawkish. Technically the pound looks good in the short term and may rise up to 1.5160. Be cautious with longs though: sterling is going to have hard times ahead of approaching elections. On Thursday Britain will release retail sales and public sector net borrowing data at 08:30 GMT.

USD/JPY recovered this week from support at 118.50, but met resistance in the 119.75 area (55-day MA) ahead of 120.35/50. Traders start to speculate about the Bank of Japan’s meeting on April 30, and the pair may retest 120.00. On Thursday watch US new home sales and unemployment claims.

AUD/USD is above 20-day MA (0.7680), but below the recent highs (0.7840). Higher-than-expected Australian inflation figures reduced expectations of the Reserve Bank of Australia’s rate cut in May. On Thursday China will release HSBC flash manufacturing PMI at 01:45 GMT.

USD/CHF jumped as the SNB announced that pension funds can be subject to negative rates. The pair’s consolidating in the descending triangle, so one may set buy stop and sell stop pending orders near its borders.

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