Forex trading plan for May 26
The picture for EUR/USD remains negative. Euro was under pressure on Monday because of concerns about Greece and the lack of liquidity at the market because of the bank holidays. Levels at 1.1000, 1.1050 and 1.1100 now act as resistance. Support is located at 1.0915 and 1.0880. The focus will be on data from the US: durable goods orders at 12:30 GMT and consumer confidence at 14:00 GMT. Also watch the speeches of the Federal Reserve’s officials.
USD/JPY has made a big move to the upside after better-than-expected US inflation data and Yellen’s comments on Friday. The US dollar is currently waiting for more catalysts from America (watch data releases on Tuesday): it all depends on the US. The pair doesn’t have full force for growth as the Bank of Japan indicated that it’s not planning to increase monetary easing for now. Resistance is at 121.85/122.05. Support is at 120.65/50 and 120.00. Buying at the lower levels may prove to be a good strategy.
GBP/USD slid below the trend line support from mid-April. Recent data from the UK was mixed, while in the US there was an unexpected improvement. Another positive release from the US will send the pound further down. Resistance is at 1.5505, 1.5530 and 1.5580 (200-day MA).Support is at 1.5450 and 1.5390/40. EUR/GBP slid below 0.7115 and may revisit 0.7025.