Forex trading plan for May 15

Data released in the US on Thursday was mixed: the unemployment claims turned out to be better than expected, but producer prices unexpectedly contracted. The latter will add to the expectations that the Federal Reserve will start raising interest rates rather later than sooner. On Friday there will be some more releases in America: industrial production at 13:15 GMT and preliminary consumer sentiment at 14:00 GMT.

EUR/USD tested levels above 1.1400. Support is at 1.1290, 1.1170 and 1.1100. Resistance is at 1.1500 and 1.1620.

GBP/USD rose above 1.5800. Resistance is at 1.5880 (50% Fibo of the 2014-2015 decline) and 1.5900 (200-week MA). Support is at 1.5625 (200-day MA) and 1.5570/50. Economic data released in the UK remain encouraging, but the Bank of England downgraded economic outlook in the Inflation Report released on Wednesday. The pound has potential to rise a bit higher, but be cautious with big longs.

USD/JPY found some support at 119.00, though the pair still looks vulnerable for a decline to 118.50/30. On Friday pay attention to the speech of the Bank of Japan’s Governor Kuroda.

Support for AUD/USD is at 0.8060 and 0.8000. On the upside target lies in the 0.8250 area.

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