Trading plan 10/06/2017
The overall picture of EUR/USD: The euro is ready for a fall.
On Friday morning, the EUR/USD rate broke down the daily order level of 1.1695. This is a strong sell signal in terms of technical analysis.
Causes: The continuation of the crisis in Spain around Catalonia's demand for independence. The authorities of Catalonia threaten to proclaim independence "in the coming days," the Spanish central authorities strictly prohibit this and refuse to enter into negotiations. The proclamation of the independence of Catalonia, the richest region of Spain, will sharply hit the government bonds of Spain and it will hit the euro.
The second reason for the decline in the euro is the strong data on the US economy.
However, today there is likely a strong movement for EUR/USD, as well as for other pairs. At 13.30 London time, the report on the labor market in the US for September will be released. Analysts predict a significant decline in the number of new jobs:
The previous value of + 156K new jobs, forecast + 100K. A decrease due to significant destruction from hurricanes in the US.
However, according to the market's behavior, it seems that the decline in indicators is already embedded in the price, and if the indicators exceed the forecasts, the euro's rate will continue to fall.
We keep sales from 1.1695 (stop-loss 1.1740). Our goal is 1.1500
Alternative: Buy at breakthrough 1.1790 up.
