Forex trading plan for May 19
The US dollar weakened last week as the series of worse than expected economic data from the US continued. At the beginning of the new week American currency experienced some correction.
EUR/USD slid to 1.1380 after it had found resistance at 1.1450. Traders were taking profits as the euro approached the key level of 1.1500. In addition, concerns about Greece have increased as the nation’s financial position is extremely fragile. On Tuesday watch the release of German ZEW economic sentiment index and the euro area’s final April CPI at 09:00 GMT. Support lies at 1.1290 and 1.1185.
GBP/USD fell to 1.5650 after finding resistance in the 1.5800 area. Deeper retracement down is likely. Watch the UK inflation data at 08:30 GMT. Support is at 1.5570 and 1.5500 ahead of 1.5400.
USD/JPY rose to 119.75. Resistance is at 119.88 and 120.15. Support is at 119.15. Range trading continues.
AUD/USD is testing levels below 0.8000. Aussie was affected by comments of the Reserve Bank of Australia Deputy Governor Lowe who said that the central bank still can lower interest rates further. Early on Tuesday the RBA will release the minutes of its May meeting when it cut the benchmark interest rate to 2%. Support is at 0.7950, 0.7900 and 0.7800.