Forex trading plan for July 17
EUR/USD trading prospects have significantly worsened on Thursday. Despite the formal improvement of the Greek issue, the market feels the Greek drama is turning into a tragedy. Greek debt keeps on growing and time to pay will eventually come. EUR/USD dipped to a new 6-week low of 1.0850 on Thursday. The ECB head Mario Draghi tried to cheer the market up, but the 1.0900 remains a hard nut to crack. Sellers stand ready to step into the market at the higher levels. We see potential for a decline to 1.0720/1.0650. Tomorrow there are no releases to watch in the euro zone, so the market will be driven by the USD trend.
As for the US Dollar, the picture has turned bullish over the past week. The Fed’s chief Janet Yellen sounds moderately dovish, while the data releases confirm economic strength. Market expectations for a September hike have increased. On Friday we’ll be watching another news block in States: June CPI, building permits and consumer sentiment index. USD Index approached the 98 point resistance. We expect it to be broken in the coming sessions.
Commodity block currencies remain pretty vulnerable. We’ll be watching USD/CAD tomorrow. The pair is now testing the 2009 highs. Canada is scheduled to releases CPI tomorrow. Bullish targets are seen at 1.3000 and 1.3060.