Trading plan for May 24

This is Forex trading plan for Thursday, May 24.

On Wednesday, the USD index jumped to 94.00. The strengthening of the US currency resulted in big slides in EUR/USD and GBP/USD. Commodity currencies – AUD, NZD, and CAD – depreciated versus the greenback. The only failure of the USD was against the Japanese yen: USD/JPY fell from 110.90 and tested support at 109.60. “FX is back to life,” one of the analysts commented speaking about the recent moves of the market.

Euro area’s PMIs and British inflation figures both disappointed. Now there are serious doubts that the Bank of England will raise interest rates this year. Britain’s future relationship with the European Union remains unclear. The negotiations continue, and there may be a statement on Thursday.

On Thursday as well, the Bank of England’s Governor Mark Carney will deliver a speech. In addition, pay attention to British retail sales at 11:30 MT time (the forecast is positive). The European Central Bank will publish accounts of its latest meeting at 14:30 MT time.

EUR/USD met support at 1.1680 (weekly pivot support and top of the weekly Ichimoku Cloud). A decline below this level will open the way down to 1.1600. If the euro manages to return above 1.1710, its recovery will likely be limited by the downtrend resistance line in the 1.1760 area.

GBP/USD was supported by 1.33. The loss of this level will bring the pound to 1.3250 – the ultimate weekly target. Resistance at 1.34 should be strong.

Finally, if USD/JPY manages to close above the 200-day MA at 110.15 on Wednesday – and even better if it rises above 110.35 – it will try to consolidate between it and 110.85.

Good luck with your Forex trading! Get ready for another exciting trading day!

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

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