Forex trading plan for April 27
By Kira Iukhtenko
Forex market remains calm ahead of the Federal Reserve meeting that will take place on Wednesday. The Fed is widely expected to leave interest rate unchanged tomorrow and there is no press-conference planned. That’s why traders all over the world will be closely watching the FOMC policy statement for any hints on a rate hike on the June meeting. The chance for any is low in light of the worrisome economic indicators we’ve seen recently. On Tuesday week durable goods orders data confirm the concerns: US economy could have slowed down over the Q1 2016. These expectations are hurting the US dollar.
EUR/USD is pushing higher for a second day in a row. Dovish Federal Reserve could support the euro tomorrow, pushing the pair towards the major resistance at 1.1460. However, the 1.1500 area still remains a hard nut to crack for the buyers, so be careful about going long on highs. There are no releases scheduled in the euro zone tomorrow, so all eyes will be glued to the Fed.
GBP/USD has finally broken above the 1.4500 area. Given such a decisive move, I’m cancelling my bearish forecasts for now. An inverse “head-and-shoulders” pattern with an initial target of 1.5000 has been confirm. Beware the 1.4660 resistance, though (February high). Watch the UK advance Q1 GDP tomorrow – if slowdown confirmed, the pair could retrace lower, but later in the day the Fed could become a game-changer once again.
You may find my analytical overview of USD/JPY and AUD/USD in the video.