Forex trading plan for October 14
Weak China trade data lowered the risk appetite on Tuesday, putting the commodity currencies under pressure. On Wednesday, we will be watching China’s CPI and US retail sales and PPI. These events could deepen the slowdown on the financial markets.
AUD/USD is forming an engulfing candle on the daily chart. A daily close below 0.7270 will confirm the end of the early-October rally. We recommend selling the Australian dollar in this case.
EUR/USD remains sustainable despite the drop of risk appetite. We concede a spike towards the 1.1500 resistance in the coming sessions. After that, the pair could enter a consolidative phase.
GBP/USD was the main driver of the session, falling by more than 100 pips on weak UK CPI. Drop below 1.5330 was a bearish signal. We expect the pair to float to the 1.5160 support in the coming sessions. Recovery above 1.5330 is needed to negate the new bearish move.