Forex trading plan for January 28
By Kira Iukhtenko
EUR/USD attempted to recover some ground on Wednesday, but was capped by the 1.0900 mark for now. The FOMC announcement could support the bulls later in the day, though. Technically, the pair remains in a bullish channel since late January. On Thursday the only important release to watch in euro zone is the German CPI. Local support lies at 1.0850.
Meanwhile, GBP/USD has lost some bullish power today. On Thursday we’ll watch the UK Q4 GDP. According to forecasts, economy grew by 0.5% (up from +0.4% in Q3). However, a weaker reading could easily pull the pair much lower as the overall sentiment towards GBP remains sceptic.
USD/JPY has recovered above 118.00. Watch the Japanese retail sales tonight (forecast – moderately upbeat). Market awaits the eventful Friday in Japan – the BOJ meeting and CPI are coming.
AUD/USD recovered back above 0.7000. We see an inverted “head-and-shoulders” pattern on the daily chart. It opens the way for more growth in the pair. Aussie was supported by better-than-expected inflation figures released on Wednesday (+0.4% in Q4).