28.04.202612:40 Forex Analyse & Reviews: Level and Target Adjustments for the U.S. Session – April 28th

The complete absence of fundamental data from the Eurozone and the United Kingdom maintained pressure on the euro and the British pound, which had been observed since yesterday. The lack of fresh data ahead of central bank meetings forces buyers of risk assets to stay on the sidelines, awaiting a clearer picture. This creates uncertainty and reinforces the negative sentiment already prevailing in the market.

Further developments will depend on US data on consumer confidence, the housing price index, and the weekly employment change from ADP. These macroeconomic indicators play an important role in shaping market expectations and may have a significant impact on the future direction of the US dollar.

The consumer confidence indicator reflects the sentiment of US households regarding current and future economic conditions. If the data comes in above forecasts, it may signal strong consumer demand and, as a result, support the US dollar. The housing price index, in turn, is an important indicator of the real estate market, which is closely linked to overall economic conditions. Rising housing prices may indicate a healthy market and increased consumer spending, which is also positive for the US dollar.

In the case of strong data, I will rely on the Momentum strategy. If there is no market reaction to the data, I will continue to use the Mean Reversion strategy.

Momentum strategy (breakout) for the second half of the day:

For EUR/USD

• Buying on a breakout above 1.1705 may lead to euro growth toward 1.1727 and 1.1753;
• Selling on a breakout below 1.1685 may lead to a decline toward 1.1670 and 1.1645;

For GBP/USD

• Buying on a breakout above 1.3505 may lead to pound growth toward 1.3530 and 1.3555;
• Selling on a breakout below 1.3485 may lead to a decline toward 1.3465 and 1.3440;

For USD/JPY

• Buying on a breakout above 159.60 may lead to dollar growth toward 159.80 and 159.99;
• Selling on a breakout below 159.40 may lead to dollar selling toward 159.15 and 158.87;

Mean Reversion strategy (reversal) for the second half of the day:

For EUR/USD

• Selling will be considered after a false breakout above 1.1703 followed by a return below this level;
• Buying will be considered after a false breakout below 1.1675 followed by a return to this level;

For GBP/USD

• Selling will be considered after a false breakout above 1.3513 followed by a return below this level;
• Buying will be considered after a false breakout below 1.3475 followed by a return to this level;

For AUD/USD

• Selling will be considered after a false breakout above 0.7185 followed by a return below this level;
• Buying will be considered after a false breakout below 0.7163 followed by a return to this level;

For USD/CAD

• Selling will be considered after a false breakout above 1.3667 followed by a return below this level;
• Buying will be considered after a false breakout below 1.3635 followed by a return to this level;