Forex trading plan for July 22
Economic calendar on Tuesday was rather light, while the global sentiment improved due to a decline in Greek voes and China headlines. Shanghai Composite added 0.6% today. As a result, we’ve seen recovery in all classes of the risky assets.
US Dollar index declined from the yesterday’s peak of 98.30. Watch the existing home sales data and crude oil inventories tomorrow. We expect the greenback to resume the bullish move in the coming sessions.
EUR/USD has recovered from a 3-month low of 1.0808 towards 1.0890, but we see this move as a corrective one. We stay bearish below 1.1000 and recommend selling euro at the current levels.
GBP/USD consolidates around 1.5500. On Wednesday, we’ll watch the Bank of England meeting minutes closely. On Thursday, the retail sales figures will be in focus. Resistance lies at 1.5670, while a break below 1.5500 could open the way to 1.5200.
USD/JPY is hanging at the June highs of 124.50. The US dollar lacked a bullish impulse today, but we believe the market could break higher in the coming sessions. Major support lies at 122.00.
AUD/USD has also recovered some ground despite the dovish RBA comments. NZD/USD rose above 0.6600. Reserve Bank of New Zealand will announce its monetary decision on Thursday – a rate cut is very likely. This could hit all the commodity block currencies.