25.04.201808:41 Forex Analysis & Reviews: Trading plan for 25/04/2018

The US dollar moved slightly upward overnight, stopping Tuesday's correction. Yields of US 10-year bonds return under 3.0%. Despite the day off in Australia and New Zealand, AUD and NZD suffered the biggest losses. Against GBP and CAD they lost the least. The stock market in Asia has fallen in red in the wake of US declines (S&P 500 -1.34%), where a series of quarterly results releases and revisions of earnings and sales forecasts have raised doubts about the passing of the global recovery summit. Today, the Chinese Shanghai Composite lost 0.4% and the Japanese Nikkei 225 fell 0.3%.

On Wednesday 25th of April, the event calendar is light in important news releases, but the global investors should keep an eye on the Crude Oil Inventories data from the US and the Bank of Canada Governor Stephen Poloz speech later during the trading day.

S&P 500 analysis for 25/04/2018:

The Conference Board's measure of consumer confidence from the US increased to 128.7 in April from 127.0 in March. This months reading is the second highest of the cycle after February's release at 130.0. The April's increase surprised market participants as consensus forecast showed another decline on continued uncertainty surrounding the trade policy. Consumers appear to have already shaken that concern, which weighed against confidence in March. April was a stronger month for consumers' assessment of the present situation and expectations. Moreover, the sub-index measuring consumers' assessment of the present situation rose to 159.6 in April from 158.1 in March while the sub-index of consumers' expectations improved as well to 108.1 in April from 106.2 in March.

Let's now take a look at the S&P 500 technical picutre at the H4 time frame after the data was published. The market has dropped towards the level of the technical support at 260.48 despite the better-than-expected CB sentiment data. The momenutm is still pointing to the downside and the stochastics is indicating oversold market conditions after this last slide. The nearest techncial resistnace for bulls is seen at the level of 263.97. The market is still traiding inside the wide range between the levels of 254.64 - 271.00, so only a clear breakout in either direction will be considered as a trend change signal.