In today’s Forex Forecast, we offer the trading outlook for USD/JPY and EUR/USD into the FOMC meeting, with Wilson Leung, Director at Trendsetter FX.
https://www.youtube.com/watch?v=53jLDO4zBe8
USD outlook remains mixed
Leung starts buy saying how the FOMC meeting will be non-event, with the absence of a press conference being the most likely sing.
He adds how a lot of profit-taking was seen in Dollar, with simultaneous buying in the Yen after comments from the Japanese PM’s advisor Hamada, who stressed that there was no need for more BoJ easing.
USD/JPY: Buy around the psychological support at 120.00
Despite the outlook for USD being mixed, Leung remains a dollar bull, and looks to buy the cross around 120.00 level for a potential target at 121.50, and maintaining a stop loss below 119.62.
He adds how 121.74 is a key level for the upside, and a break of this might lead to a climb around 122.15 and then 123.00.
EUR/USD: Marginally bullish into the FOMC but a sell in the next week
Leung remains marginally bullish on the EUR into the FOMC meeting, expecting further short covering into the meeting.
On the trade setup, he suggests using the EUR/USD’s climb above 1.11 to sell the pair early next week, with a downside target at 1.0940 and then 1.0860, and maintaining a stop loss at 1.1140.
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