Forex trading plan for October 7
By Kira Iukhtenko
Financial markets are enjoying risk-on sentiment as the US labor market figures last week decreased expectations for a rate hike in 2015. Traders now await the FOMC meeting minutes release on Thursday – the publication could bring some certainty back to the market. Chinese markets remain closed until Thursday – this calms the global sentiment for a while.
EUR/USD is hovering around the 1.1200 mark, supported by the global USD weakness. The euro currency remains sustained, showing no reaction to the sharp contraction of the German factory orders. There is space for more upside in the coming sessions. Next target lies at 1.1280. Break below 1.1170 would confirm the bearish comeback.
GBP/USD keeps on consolidating around the 1.5160 mark. Daily fix above this level is needed to open the way to our next targets at 1.5230 and 1.5330. We’ll stay bullish above 1.5100. Don’t miss the UK industrial production on Wednesday (forecast - upbeat).
USD/JPY stays in a tight range, capped at 120.50. Technically, there is a chance for a decline to 119.50 in the coming sessions. However, The BOJ meeting on Wednesday is a risk – some economists expect the Japanese regulator to announce additional easing tomorrow.
AUD/USD enjoys the rebound, hitting a freshhigh at 0.7130.The RBA left rate unchanged at today’s meeting, supporting the Aussie. Strong resistance for the pair is seen at 0.7200/50 – we expect a bearish reversal from here.