During the today’s trading, Wednesday, April 29, 2020, the financial markets and investors in the forex market are awaiting the announcement of the US economic growth figures. This is in the era of the Corona crisis, amid expectations of a sharp contraction of the largest economy in the world. An update will be announced for the monetary policy of the Federal Reserve Bank amid strong expectations that they will keep the US interest rate unchanged, and the greatest interest will be in the contents of the bank’s monetary policy statement and the comments of Governor Jerome Powell. Along with the US government, the bank presented massive stimulus plans, trillions of dollars, to support the US and global economy and keep financial markets operating appropriately as the economic shock from the epidemic continues.
Although the US disease outbreak has crossed the one million mark, the US administration is rapidly seeking to reopen the US economy so that stimulus plans recently approved do not evaporate and thus increase pressure on the global financial system. The worldwide closure policy to contain the rapid spread of the virus has paralyzed the global economy and exacerbated the global crisis.
As for the performance and movements of global currencies, the USD is trying to stop its losses ahead of the important US economic data results today, the central bank's monetary policy and important comments from Governor Jerome Powell. As for the Euro, it is still under huge pressure amid a complete absence of huge European economic stimulus in the face of the crisis and weak European economic results, as Europe remains an active point for the outbreaks and currency traders may wait for the European Central Bank announcement tomorrow to obtain signals that revive the Euro or increase its losses. As for the British pound, it received support from the return of British Prime Minister Johnson to work after recovering from Coronavirus symptoms, as well as investors’ risk appetite, but gains may collide with the sharp negotiations between the European Union and Britain on the future of relations between after Brexit. As for safe heavens, gold is witnessing a correction from its highest levels in eight years, but still has the opportunity to achieve the strongest gains at any time. The Japanese yen is gaining more gains against most other major currencies.
In the following lines, we will review together the most important trading opportunities, whether buying or selling of the most important currency pairs and gold that may occur during today's trading based on the expected events and economic data:
The most important buying levels:
- Buy the EUR/USD pair from the 1.0765 level, target 1.0960 and the stop at 1.0680.
- Buy gold from the 1682 level, target 1740 and the stop at 1666.
- Buy the EUR/AUD pair from 1.6570, target 1.7000 and stop at 1.6460.
- Buy the USD/JPY pair from the 106.30 support, target 110.00, and stop at 105.40.
The most important selling levels:
- Sell the NZD/USD from 0.6135, target 0.5980 and stop at 0.6220.
- Sell the USD/CHF from 0.9785, target 0.9550 and stop at 0.9970.
- Sell the AUD/USD from 0.6630, target 0.6200 and stop at 0.6720.
- Sell the GBP/USD from 1.2545, target 1.2200, and stop at 1.2640.