Trading plan for 21/04/2017: The marketplace is tradng with low volatility, no crucial data was published during the night. The third day in a row, EUR/USD will begin the European session from 1.0720 level. USD/JPY rebounded above 109.00. The marketplace is awaiting the preliminary of the French presidential election. The announcement of the reform of the tax system by the Trump administration, combined with the good results of the companies, has bolstered the Wall Street index (Nasdaq has reached the greatest levels in history). In Asia, a positive sentiment is seen first of all on the Tokyo exchange, where the Nikkei 225 is up 0.8%. WTI oil after Wednesday’s fall is unable to permanently return over $51 per barrel and the ounce of gold is valued at $1,280.
On Friday 21st of April, the event calendar is hectic with macroeconomic information from the Eurozone (Flash Manufacturing, Provider, and Composite PMI’s), Excellent Britain (Retail Sales with Auto Fuel), Canada (Consumer Price Index) and the USA (Flash Manufacturing, Services, and Composite PMI’s and Existing Home Sales).
EUR/USD analysis for 21/04/2017:
The bunch of PMI information from France, Germany, and Eurozone is scheduled for release from 07:00 am to 09:00 am GMT. The most crucial reading will be the Eurozone Composite PMI, which is expected at the level of 56.4, unchanged from a month earlier. This is still the greatest reading given that the second quarter of 2011– a six-year high. Lots of market individuals see the high readings as an excellent indication. Surprisingly, the previous highs in PMI Composite were right prior to the 2000 stock market peak, then in 2007 before the financial crisis and later in 2011 when the euro crisis will start.
Let’s now take a look at the EUR/USD technical image at the H4 timeframe. The marketplace is in the last stretch prior to the first round of the presidential elections in France over the weekend, so only an extremely bad data would flatten the positive belief. The rate, nevertheless, reversed from the 61%Fibo at the level of 1.0776 and now got back to the previous technical assistance zone at the level of 1.0705. There is a high possibility that the marketplace will be trading sideways today as the biggest danger will originate from the outcomes of the French election and those will be understood late on Sunday. The next support is seen at the level of 1.0569 and the next crucial technical resistance is seen at the level of 1.0904.
GBP/USD analysis for 21/04/2017: The Retail Sales with Auto Fuel data are scheduled for release at 08:30 am GMT and market participants anticipate a moderate -0.3% decline after a 1.4% increase last month. On an annual basis, the sales decrease need to reach 0.4%, from 3.7% to 3.3%. The expectations are that the general financial activity will decline a little on monthly basis, however still looks pretty decent on the yearly basis – no real effect of the Brexit event in the information yet.Let’s now have a look at the GBP/USD technical picture at the H4 timeframe. The cost is still combining the gains above the technical support at the level of 1.2772, but the marketplace conditions look overbought. Nevertheless, as long as the technical support is not clearly violated the bias remains bullish. The next resistance is seen at the levels of 1.2845, 12856, and 12905.
USD/CAD analysis for 21/04/2017: The Consumer Rate Index data are scheduled for release at 12:30 pm GMT and market participants anticipate a slight indication of inflationary pressure. The CPI Index is anticipated to increase from 0.2% to 0.4% on a monthly basis and the Core CPI need to beat the previous 0.4% reading. The CPI Index is the crucial gauge for inflation in Canada, so any information better than expected will send out a clear message to the Bank of Canada concerning an additional rate of interest policy (because case the rates of interest walking would be a proper response).
Let’s now have a look at the USD/CAD technical picture at the H4 time frame. The cost is trading simply listed below the crucial technical resistance at the level of 1.3534 in overbought market conditions. There is still no unfavorable divergence in between the rate and the momentum oscillator, so it is still possible for the cost to aim to evaluate that level. The next support is seen at the levels of 1.3455 and 1.3400.
Market photo: Gold consolidating gains around 61%Fibo
The rate of the yellow metal still does not wish to decrease despite the overbought market conditions in the everyday amount of time. The preliminary breakout above the golden trend line was a fake one, but bulls have managed to bounce from the closest assistance at the level of $1,271. Currently, gold is anticipated to trade within the trading range between the levels of $1,270 – $1,263 and $1,295 – $1,308.
The material has actually been supplied by InstaForex Company – www.instaforex.com