151

Forex trading plan for August 11

By Elizabeth Belugina

The US dollar is generally strong after Friday’s non-farm payrolls release. However, traders are selling the greenback versus the euro and the pound. It happens as the number of USD longs is very large, and some players take profit on good news from America. In the meantime, the situation in the euro area has temporary stabilized, while pound is supported by the fact that the Bank of England, despite the disappointment at its August meeting, will be the second central bank after the Federal Reserve to raise interest rates. Watch for the comments of the Fed’s members later on Monday and US unit labor costs at 12:30 GMT on Tuesday.  

EUR/USD is contained by 1.0980. A break above this level will lead the single currency up to 1.1012 and 1.1050. Support is at 1.0950, 1.0925 and 1.0900 ahead of a strong support in the 1.0800 area. The euro area’s Sentix investor confidence came below expectations. On Tuesday watch German ZEW economic sentiment, the forecast is positive. The best strategy is to open small shorts on the spikes to the upside.

GBP/USD recovered to the previous support at 1.5550, which is now acting as resistance. Above this level, cable will be able to rise to 1.5580 and 1.5615 (the breached support line). Support is at 1.5465 and 1.5425.

USD/JPY keeps trading below the psychological mark of 125.00. We will likely see more consolidation between this level and 124.00. Next support is at 123.50.

AUD/USD has been testing levels above resistance levels since May and the psychologically important level of 0.7400. Negative data from China makes it more difficult for AUD bulls to press higher. Above 0.7425 Aussie could rise to 0.7450 and 0.7490. Support is at 0.7360 and 0.7330. Watch the release of NAB business confidence at 01:30 GMT. 

EUR
Scroll to top