Forex trading plan for May 27
US dollar index declined for the second day, despite the fact that American durable goods orders showed larger gains than expected. Among the important things to pay attention to on Friday we should cite the release of the US preliminary GDP at 12:30 GMT (positive forecast) and the speech of the Federal Reserve’s Chairwoman Janet Yellen at 17:15 GMT. If Yellen follows the number of the Fed members who pointed out that the central bank could increase rates this summer, US dollar should get a new push to the upside.
Oil prices rose above $50 a barrel as US crude inventories decreased. Note, however, that concerns about US interest rates and China’s economic slowdown may limit further gains.
EUR/USD recovered to 1.1200, though there’s resistance at 1.1218/25. Next resistance levels lie at 1.1240 and 1.1300. Support is at 1.1135, 1.1100 and 1.1050. The short-term trend for the euro is still bearish.
GBP/USD paused above 1.4700. The UK’s latest GDP report showed that British economy added only 2.0% year-on-year in Q1 failing to meet the annual forecast of 2.1%. Resistance is at 1.4770 (May high, 200-day MA). Support is at 1.4635 and 1.4550.
USD/JPY is consolidating within a triangle (109.00-110.50), which means that an increase in volatility will happen soon. It seems that there are some heavy sellers at the top of this range, so its downside border seems more vulnerable.