Forex trading plan for July 21
EUR/USD paused in the 1.0818 area (May low) as Greece made debt repayments to the ECB and the IMF. Support is in the 1.0750/10 region ahead of 1.0660. Resistance is at 1.0915 and 1.0965. With empty economic calendars in the US and the euro area traders await more comments and news on Greek bailout.
GBP/USD slid to the 55-day MA in the 1.5540 zone after last week it met resistance in the 1.5675 area. The next important event for the British currency is the publication of the Bank of England’s meeting minutes on Wednesday. The minutes will give us more insight into the BoE’s mindset after Governor Carney’s hawkish comments last week. If other members of British central bank don’t share Carney’s optimism, pound will decline. If not, sterling will fight dollar’s strength. Ahead of the release we expect more sideways trading. Support for cable is at 1.5500 and 1.5450, while resistance lies at 1.5675 and 1.5700.
More hawkish comments from the Fed’s Chair Janet Yellen and relief in Greece made USD/JPY continue its V-shaped recovery and rise above 124.00. Resistance is at 124.50 and 125.00. Support is at 123.70, 123.30 and 122.90. There won’t be any important releases either in the US or in Japan on Tuesday, so watch the risk sentiment and the development of the Greek story.
AUD/USD dipped to 0.7327. Aussie was affected by the sharp decline in gold price. Gold fell by $50 on Monday as the stop orders were hit in the situation of low liquidity. The Reserve Bank of Australia will release the minutes of its July policy meeting on Tuesday. Watch this publication for hints whether the RBA will move from the position of more easing to the more neutral view. Technically, after AUD/USD made a break to the downside this month, it remains under negative pressure. Resistance at 0.7500/0.7586 will limit the pair on the upside. Sell on the recovery.