Trading plan 16 - 10/20/2017
The general picture: News did not clarify.
Last week there were two main events: The ECB and news on inflation in the US.
The ECB unexpectedly merged information about the decline in the QE program 2 times since January (from 60 billion euros to the market every month to 30). The information is unofficial, but the probability is very high. Still, the official decision in a week, October 26.
News on the US: Inflation rose to + 2.2% per annum but without gasoline and products remained + 1.7%, below the lower FRS threshold of 2%. Retail sales, however, accelerated growth to + 1.6% for the month.
The market tried to push EUR/USD above 1.1880 but received strong resistance from sellers. Uncertainty.
EUR/USD: We are preparing to break the boundaries of the range.
The situation on EUR/USD is uncertain. Last week, growth stopped and buyers faced strong resistance from sellers in the zone 1.1870 - 1.1880.
At the same time, it's too early to talk about a full turn.
Formed a range with the boundaries of 1.1668 - 1.1880.
We propose to wait for an exit from the range and take positions in the direction of exit: Buy at the breakthrough level of 1.1880 upward or sell at breakthrough 1.1668 down.
The main news event of the week is the Fed's report on the economy "Beige Book" on Wednesday at 19.00.
