Forex trading plan for December 22
Year-end flows are having a mild bearish effect on the greenback. On Tuesday America will release final GDP figures for Q3: analysts expect downward growth revision from 2.1% to 1.9% (13:30 GMT). Still, fundamentally US dollar remains strong as the Federal Reserve increased interest rates last week.
EUR/USD went up on Monday after finding support at 1.0800 on Friday. The increase of uncertainty in Spain didn’t discourage the single currency: the conservative Popular Party (PP) lost its majority, while anti-austerity party Podemos and liberal Ciudadanos made big gains. The pair may continue moderate gains ahead of the US session on Tuesday. Resistance is at 1.0940 and 1.0980. There will be some minor data from Germany in the afternoon.
GBP/USD is consolidating around 1.4900. Support is at 1.4880 ahead of 1.4850. Resistance is at 1.4950. We may see attempts to test this level, but the sentiment about British currency is bearish and the preferred trade is to sell the pound. Public sector net borrowing is due at 09:30 GMT.
USD/JPY met resistance at 121.50/60 (daily MAs). Below these levels it will test support at 120.80/60. Further resistance will be at 122.20. AUD/USD managed to gain a bit, though it’s risky to chase the upside. Resistance is at 0.7205 and 0.7235.