Trading plan for July 28, 2017
Overall picture: The trend against the dollar stopped. Markets are defined by direction.
On Thursday, important events took place on the market. Unexpectedly, the report on orders for durable goods in the US came very strong, much better than forecasts. The growth of total orders is + 16% to the previous year, but this is due to Boeing aircraft. Also, without transport strong + 6.8% to the previous year.
Important: Today, the report on US GDP for the 2nd quarter at 13.30 London time will be released and the market will now wait for a strong report. This can break the trend against the dollar for the euro and the pound finally. (The yen did not participate, and the franc yesterday turned sharply in favor of the dollar).
In the US market, a weak report of Amazon came and the technology sector has sharply gone down, pulling indices.
However, by the time of closure, the entire decline was almost completely redeemed.
Look at the charts USD/JPY, EUR/CHF and USD/CHF.
It was here yesterday that the strongest movements were going on. (Laugh with me over those grieving teachers who teach that the euro and the franc only go together and the euro/franc is a purely range asset).
There are suspicions that the EUR/USD day's decline is caused not only by reaching the upper border of the channel and the need for correction but because there was a sharp turn in the franc in favor of the dollar.
Yesterday, it is quite obvious that the dollar and the euro were heavily bought for the francs.
So today, we are waiting for data on the United States at 13.30 London time.
For EUR/USD:
Down option: Sell at breakdown of 1.1610. Purchases: We hold positions from 1.1670 and stop at 1.1625.
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