Forex trading plan for December 8
By Kira Iukhtenko
US Dollar is gradually recovering after the last week’s selloff on the ECB decision. However, the USD index still holds far below the recent highs. In our view, the greenback will remain well-supported ahead of the Fed’s December 16 meeting, so all the major pair will play the recent moves back. This week the US economic calendar is pretty light except for the retail sales on Friday. However, a deeper drop of commodities could push the US currency to the upside.
EUR/USD slipped to 1.0800 on Monday. Let's see whether the market will manage to fix below the 1.0830 mark. Euro still has huge potential to decline, while the current levels are a good moment to open short positions.
GBP/USD is also moving to the downside. The pair declined to 1.5050. Watch UK manufacturing data on Tuesday. Negative forecasts open the way for a decline to 1.5000 and below. We stay bearish below 1.5200.
USD/JPY remains capped in the sideways channel and seems to be “afraid” to break above the trend line, connecting the recent highs. There is potential for more upside, but the trade is rather risky at these levels. Wait for clearer signals.
Commodity currency are retracing from the overbought levels. AUD/USD slipped to the support of the current bullish range at 0.7250. Break lower will open the way for more downside.