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Forex trading plan for June 16

Market moves are moderate as traders are cautious as they await the results of the Fed’s meeting on Wednesday. US dollar is under pressure as American industrial production and Empire State manufacturing index came lower than expected.

EUR/USD is trading in the 1.1200 area. Don’t miss German ZEW economic sentiment data at 09:00 GMT. Uncertainty about Greece keeps weighting on the pair: the negotiations during the weekend didn’t bring results. No breakthrough is expected at least until the end of the week. Resistance is at 1.1260 ahead of 1.1290, 1.1320 and 1.1380. The euro will be likely sold on attempts to recover. Downside target is at 1.1150 (last week’s minimum).

GBP/USD is testing support in the 1.5500/5493 (200-day MA) area. Britain will release inflation data on Tuesday at 08:30 GMT. Analysts expect some improvement in May after a decline in consumer prices seen in April. The higher is inflation, the sooner will traders expect the Bank of England to start raising rates. Resistance is at 1.5550, 1.5600 and 1.5690. Support is at 1.5475, 1.5440 and 1.5400. USD/JPY is consolidating in the 123.80/10 area. Support is at 122.50/35. Resistance is at 124.12 and 125.00.

AUD/USD climbed above 0.7750 in the US session. Markets await the Reserve Bank of Australia monetary policy minutes release tonight. RBA left interest rate unchanged at 2% on the June 2 meeting. However, the bank’s governor Glenn Stevens declared readiness to cut further as the economic outlook remained soft. Minutes are a bearish risk for the Aussie as they could reveal the overall RBA sentiment. Support for AUD/USD lies at 0.7700 and 0.7675, while the upside remains capped by the 0.7800 mark.

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