Forex trading plan for January 29
By Kira Iukhtenko
EUR/USD is trying to recover on the back of the overall USD weakness, but remains capped by the 1.0950 mark (trend line). Weak German CPI and ECB easing expectations are a limiting factor. However, we could jump to 1.1000 on Friday on the US GDP. The US economic growth is expected to have slowed down to 0.8% in Q4.
GBP/USD recovered after the UK GDP came out in line with forecasts. The pair is now testing the 0.4350/60 resistance area. Fix higher would be a great signal to go long for the pair.
The market expected the BOJ meeting on Friday as well. USD/JPY is trading above 118 yen as we write. However, if BOJ gives no hints on a potential easing, the pair could lose some positions and slip into the 118-116 yen range.
As for AUD/USD, this is the champion of the week. The pair is now trading in an invers head-and-shoulders formation. Target lies at 0.7280. Weak USD and recovery of the commodity market creates room for a higher Aussie correction.