Trading plan for May 22

Last week was highly positive for the US dollar, so, it managed to end the Friday’s trading above 93.50. However, the beginning of this week is not so encouraging for USD. The US dollar index tested levels near $94, but couldn’t stick there and fell to $93.60. No notable data are anticipated to be released on Tuesday. As a result, only political news will be able to support the greenback. The trading is not extensive, however, if the greenback is not able to recover, other currencies will get a chance to appreciate against it.

The pound is still falling. Tuesday will be an important day for the UK currency. Inflation report hearings will be released at 12:00 MT time. More hawkish sounding outlook on economic conditions and inflation will support GBP. Moreover, the next round of Brexit talks will start on Tuesday. As news on the Brexit deal was highly uncertain, there are risks for the pound. GBP/USD tested the support at 1.34, however, managed to rebound as the US dollar started declining. The pound is trading within 1.34-1.35. If GBP/USD closes below 1.34, there is a risk of the further movement to 1.3350. On the other hand, if Tuesday’s events are encouraging for the pound, it will be able to reach the resistance at 1.35.

Trade war’s tensions eased. The US and China agreed to put tariffs on hold. Furthermore, China plans to significantly increase imports from the US. As a result, the Australian dollar managed to recover. The Australian dollar/US dollar pair rebounded from the pivot point at 0.75. Up to date, the pair is moving to the resistance at 0.7565. If it is able to close above this level, the next aim is at 0.7620. However, no important economic data for the Australian dollar are anticipated to be out in next few days, so, there is a risk that the pair will continue to trade within 0.75-0.7565.

Thank you for your attention! 

Similar

CPI May Hit 10%, What to Do?
CPI May Hit 10%, What to Do?

For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.

How Powell's hawkish speech will affect the USD and gold?
How Powell's hawkish speech will affect the USD and gold?

The higher prices seen today are generally related to the pandemic, that’s no doubt. US consumer prices jumped in October at the fastest pace in three decades putting the Biden administration on the defensive and increasing prospects that the Federal Reserve will raise interest rates next year. Jerome Powell says Fed will discuss speeding up bond-buying taper at the December meeting. What does it mean for markets?

NASDAQ, S&P500 crash?
NASDAQ, S&P500 crash?

It seems like most of the assets have joined Black Friday's sell-off with global indices, risky currencies, and commodities going down.

Latest news

Risk On: Market Outlook for May 16-20
Risk On: Market Outlook for May 16-20

Gold is about to break the most significant support. The US dollar index keeps gaining momentum. However, the situation might change this week, and we might see a tiny correction. Investors might return to risk-on and push the US stock market indices and cryptocurrencies to the upside. These and more trade ideas are in our new weekly video! Do not miss it!

IT CAN'T BE REAL | 5 assets to trade on May 9-13
IT CAN'T BE REAL | 5 assets to trade on May 9-13

This week is likely to be pivotal for many assets, including gold, USD, and several stocks. However, we need to be focused and react fast to the ever-changing environment to get the most from it.

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera