Forex trading plan for January 15
By Kira Iukhtenko
Markets are trying to recover the recent losses on Thursday, but we have no reasons to believe that the global selloff is over. EUR/USD attempted to grow, but was capped at 1.0940 after the dovish ECB minutes released. It turned out that some members voted for a 20 bps rate cut in December. Be believe a break below 1.0850 will open the way t0 1.0800. These days we're trading with small targets as volatility remains very high.
Chart. EUR/USD H4
GBP/USD failed to fix above the 1.4400 resistance despite the hawkish BOE minutes. They showed that the Commitee sees no big problems in the current market meltdown. We see that the upside is limited for now. Sell the cable on a break below 1.4380. We'll stay bearish in the medium term below 1.4500.
Chart. GBP/USD H4
Meanwhile, USD/JPY is trying to recover the recent losses. Key resistance – 118.30 (Thursday's high). Break higher could confirm an inverse "head-and-shoulders" pattern and open the way for a stronger recovery. However, buying at current levels is very risky.
Chart. USD/JPY H4