Forex trading plan for August 28
By Elizabeth Belugina
US dollar strengthened as American Q2 GDP growth was revised up from 2.3% to 3.7%. That’s a pretty strong reading. Unemployment claims also stayed low – another positive sign for the greenback. These data together with stabilization in Chinese stocks somehow returns the market’s thoughts to the possibility of the Federal Reserve’s potential rate hike in September. Kansas Fed President George sounded less dovish than usual. Ion Friday at 12:30 GMT the US will release trade balance and personal spending figures. In addition, keep an eye on comments from Jackson Hole where the Fed holds symposium wchich will be attended by the world’s financial chiefs.
EUR/USD tested 1.1225. The euro is in reverse correlation with the market’s risk sentiment these days: it goes down as traders’ mood improves. Below 1.1280 the pair is vulnerable for a slide to 1.1180 and 1.1130. Resistance is at 1.1318 (200-day MA).
GBP/USD retested the breached support at 1.5500, but remained under bearish pressure. The focus is on the 200-day MA at 1.5370 and 1.5330 (July 7 minimum). At 08:30 GMT Britain will publish the second estimate of Q2 economic growth, no changes to the 0.7% increase are expected.
USD/JPY finally recovered to resistance at 120.50/70. The next obstacle for the bulls will be at 121.50 (the previous 2015 support line). Support is at 118.65 and 119.30. Early on Friday there will be a bunch of economic data from Japan: inflation and retail sales releases.
AUD/USD was fluctuating around 0.7130. Important quarterly private capital expenditure figures came out lower than expected contrasting with bright US figures. Still, oil is recovering and this infuses some fresh spirit to the market. Resistance is at 0.7220 and 0.7300. Support is at 0.7115/00, 0.7070 and 0.7030.