Forex trading plan for April 26
By Elizabeth Belugina
US dollar started the weak under pressure as traders don’t expect any hawkish statement from the Federal Reserve on Wednesday. American new home sales data turned out worse than expected (511K vs. 521K). On Tuesday the US will release durable goods figures at 12:30 GMT: analysts expect improvement after poor figures of the previous month.
EUR/USD recovered to 1.1260. German Ifo business climate missed the forecast (106.6 vs. 107.1), though the data don’t change the fundamental picture for EUR/USD. Last week the ECB didn’t ease monetary policy, but underlined that its approach will remain accommodative. The euro’s failure to overcome levels in the 1.1400 area last week mean that the bulls don’t have enough strength to push the pair higher. Resistance at 1.1300 and 1.1350 should limit the upside. Support is at 1.1215 and 1.1150.
GBP/USD tested levels above 1.4500 on Monday. British pound broke above resistance line connecting February and March highs and the next targets on the upside may lie at 1.4635/70. Support is at 1.4440 and 1.4400. The pair rose as US President Barack Obama spoke in favor of the UK remaining within the European Union.
USD/JPY opened with a gap up at 111.87, but then tested levels below 111.00. Earlier the US dollar gained on the expectations that the Bank of Japan will start lending to banks at negative interest rate. However, traders still seriously doubt that any measures of Japanese central bank would be efficient. Below 110.85/75 the pair will slide to 110.30.
AUD/USD recovered a bit after 3 days of declines. Resistance is at 0.7730. A break higher will open the way up to 0.7760 and 0.7800. Support is at 0.7690 and 0.7650.