Trading Plan 10/24/2018
The overall picture: The market is preparing the autumn trend.
The euro is under pressure on the euro. The EU over the Italian budget deficit and the Italian populist government violates EU rules limiting the maximum budget deficit. The EU, contrary to expectations, expressed tough disagreement with the Italian deficit.
The second plot is the continuation of disputes within the British authorities under the agreement of Britain - EU - market. However, sluggishly reacts to this situation.
The third plot is the strong jumps in the US stock market. On Tuesday, the US market showed a new sharp drop at the opening. However, the close was with strong growth. Perhaps, the autumn correction was completed.
In the foreign exchange market, we see continuation of consolidation in the ranges. But it is very likely that a breakout from the ranges and strong movement will take place in the near future. Possible drivers, news on the US economy, the report of the Beige Book Fed today, the report on US GDP for the 3rd quarter on Friday, and the ECB on Thursday.
Pound: We are ready to sell at a break of 1.2920 down.
We are ready to buy at the breakthrough of 1.3260.
