Trading plan for October 28
By Kira Iukhtenko
US Dollar has lost some ground at the beginning of the new week. Weak US data (housing, durable goods) and the expectations of the Fed pressure the US currency. The Fed is widely expected to leave interest rates unchanged this time. We’ll be monitoring the Fed’s policy statement – this will launch the further USD trade and define the risk-sentiment. Potential USD pullbacks could be used to go LONG in the medium-term.
EUR/USD has found some temporarily support at 1.1100, but we recommend selling the pair if any rallies occur. Next targets are 1.1000 and 1.0820 (medium-term target). Euro zone’s calendar for tomorrow is light, so all eyes will be glued to the Fed.
GBP/USD gave up some ground after the UK Q3 GDP release. Economy rose by only 0.5%. Break below 1.5300 confirmed our bearish forecasts and opened the way to 1.5000 in the coming days. We’ll stay bearish below 1.5500.
Another event to watch on Wednesday is the RBNZ policy meeting. The regulator is expected to hold rate unchanged at 2.75%. A flag is being constructed on the H4 NZD/USD chart. We are ready to SELL below 0.6770.