Let’s find out what has been moving the market today…
Trading plan for May 30
The US dollar index reached the psychological level of $95, however, couldn’t stick there and lost some pips. Tuesday’s consumer confidence data was weaker than the forecast. Up to now, the index is trading near $94.60, but there is a risk of a further decline. The support lies at $94.30. If the index is not able to rebound from the support, the further fall will be anticipated. Tomorrow traders will take into consideration nonfarm employment change and prelim GDP. The forecast is not encouraging. If the data aren’t greater than the forecast, the US dollar may fall even further.
The single currency strongly plunged as political tensions in Italy intensified. EUR/USD tested two supports at 1.1580 and 1.1520. The weak US dollar let the euro rebound from 1.1520. However, if the pair closes below 1.1580, traders can anticipate the fall to 1.1520 again. On Wednesday, a lot of significant economic data will be released. If they are encouraging, the euro will have chances to recover to 1.1650. Otherwise, the further aims for the euro are at 1.1520 and 1.14.
Oil keeps falling, so USD/CAD keeps rising. The pair tested highs of the end of March 2018. However, it didn’t stick there because of the greenback’s decline. Tomorrow the Bank of Canada will release the interest rate. Although the central bank is not anticipated to raise the rate this time, it will likely do it later this year. That is why it is important to listen to the BOC report and look for hints on its future monetary policy. A more hawkish sounding speech will support the loonie, so the pair will remain below the resistance at 1.3050. The support lies at 1.29. Otherwise, the pair will be able to move to 1.31.
Thank you for your attention!