Forex trading plan for January 13
By Kira Iukhtenko
Economic calendar on Wednesday consists of a couple events, but they are very important in the current market conditions. Watch the Chinese trade balance in the Asian session. Contraction of the trade surplus could become an important risk-off factor. Later in the day, US are scheduled to release crude oil inventories figures. According to the preliminary estimates, we could see more inventories growth. These two releases could hit the markets with a new wave of selling.
In the current conditions, we recommend staying out of the risky assets. EUR/USD holds slightly above the 1.0840 support (50% Fibo from the early January rally). Break below could trigger a new wave of selling with a target of 1.0800.
GBP/USD fell below the 1.4500 support after a short-term correction. The market was disappointed by the UK manufacturing PMI on Tuesday. The market is now focusing on a BOE meeting on Thursday – no rate hike is expected.
USD/JPY tries to recover for a second day in a row, but the attempts are rather unsuccessful. Yen will remain in-demand as a safe haven. Break to the downside from the current 117-118 yen sideways range is expected. Watch the 116.50 support.