Forex trading plan for April 28
By Elizabeth Belugina
A very important event for the US dollar is due on Wednesday: the results of the Federal Reserve’s meeting will be released at 18:00 GMT. The change in the central bank’s interest rate is very unlikely, so the main thing to watch will be the Fed’s statement. There are some more hawkish members within the Fed, so the central bank may prepare ground for a potential rate hike this summer. Yet, the central bank will probably try to sound balanced. The main thing to watch is whether the phrases about “unstable situation at global financial markets” and “risks for global economy as a whole and the US economy in particular” remain in the text of the statement. If they do, the US currency will remain under negative pressure. If they don’t, the greenback will gain versus other majors. On Thursday the US will release advance GDP at 12:30 GMT: growth is expected to slow in Q1 from 1.4% to 0.7%.
Later on Wednesday watch Japanese inflation and retail sales figures: the forecasts are negative. There’s also chance that the Bank of Japan will ease policy on Thursday. You can learn more about trading on the Japanese central bank’s decision here.
The meeting of the Reserve Bank of New Zealand will take place on Wednesday night. Support for NZD/USD is at 0.7800/7780, while resistance is at 0.6900/50.
Resistance for EUR/USD lies in 1.1350/1.1375 area, while support is at 1.1215/1.1190. The advance of GBP/USD stalled as British economic growth pace decline in Q1. Support is at 1.4550 and 1.4500. Resistance is at 1.4640/70.
AUD/USD fell below 0.7600 as Australian CPI unexpectedly contracted in Q1. This revived expectations of potential RBA rate cut next week. Watch support at 0.7560 ahead of 0.7500 and 0.7400. Resistance is at 0.7690.
Find more analysis for the major currency pairs in the video.