Trading plan for 26/07/2018

Today the USD is weaker than the major currencies except for AUD, although the changes are not big on the holiday market. Investors are still analyzing the Trump-Juncker agreement from yesterday. There is also no speculation before the next week's meeting of the BoJ. Proof of the fact that optimism does not break through to the surface is the inclusion of indices.

EUR / USD once again came under 1.1750, as the market positively accepted the results of the Trump-Juncker meeting. The head of the EC came to Washington with a list of concessions: increasing LNG and soy imports, lowering duties on industrial products and loosening regulations on medical products.

On Thursday the 26th of July, the main event of the day is the ECB interest rate decision and press conference. Although all traders are waiting for it, analysts do not expect any revelations. Many experts believe that this will be the least important meeting of the ECB for years. Still, it is worth observing them and maybe we will know some new important information. Besides the ECB event, there are some important data to be released from the US: Durable Goods Orders, Goods Trade balance, Wholesale Inventories and Unemployment Claims data. No speeches scheduled for today.

USD/JPY analysis for 26/07/2018:

The pair trades steadily but remains at under 111 and closer to 110.60, where the price felt after yesterday after reports that Bank of Japan is planning changes in its asset purchase program at its nearest meeting - wants to buy more shares in ETFs based on Topix than Nikkei to reduce the pressure on the valuation of some companies. Lower USD / JPY weighs on Nikkei225, that is currently losing around -0.1%. The next technical support is seen at the110.34 - 110.26 zone, but the price starts to diverge from the momentum already. The market conditions remain oversold at this time frame, so a short-term pull-back is being expected soon. The key intraday level to the upside is seen at 110.95.

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The material has been provided by InstaForex Company - www.instaforex.com