Trading plan for 16/04/2018

The missile attack of the US, the UK, and France in Syria did not make panic on the financial markets yet. The currency market is calm, JPY is the strongest, but USD/JPY stopped the falls before 10 7.10. After AUD and NZD, there is no increase after the recent drops. The Asian stock market is drawing a mixed picture: Nikkei gains 0.2% on the Asian stock market, but Shanghai Composite loses 1.8%. SP500 futures are growing 0.3%. Gold in the first reaction after the weekend approached to 1348 USD, but already goes back to 1344 USD. WTI oil has lost $ 0.5 and is now at 66.8 USD.

On Monday 16th of April, the event calendar is light in important data releases, but the global investors should keep an eye on Retail Sales and Empire State Manufacturing Index data from the US. Moreover, there is a scheduled speech from FOMC Member Raphael W. Bostic later in the evening.

EUR/USD analysis for 16/04/2018:

The geopolitical situation is the most important fundamental issue the global investors should focus on these days.The missile attack on targets suspected of linking to a chemical attack from a week ago did not make panic on the financial markets yet. Investors are waiting for the situation to develop, although the subdued reaction of Russia does not force aversion of risk. US President Trump warned the Syrian government that the US is ready to strike again if the chemical attack repeats itself. President Putin, in a telephone conversation with his Iranian counterpart, said that the world will witness «chaos» if the attack on Syria is repeated.

Let’s now take a look at the EUR/USD technical picture at the H4 time frame. After a failure to break out above the 61% Fibo the market dropped towards the level of 1.2320 and made a new low at the level of 1.2297. Since then the price is locked in a tight horizontal zone between the levels of 1.2297 — 1.2395 and the momentum indicator is hovering around the neutral fifty level. The market participants might be now in a waiting mode to see how the fundamental situation is developing.

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