Today’s Trading Plan 10.20.17 – EURUSD and AUDNZD


*Good morning/afternoon everyone!*

The U.S. dollar is trading sharply higher this morning after the US Senate approved the tax reform resolution last night preventing a filibuster from the Democrats. The next stop is the house. Investors are extremely excited that tax cuts are on the way and have celebrated by taking the dollar, stock futures and bond yields sharply higher. The JPY, CHF AUD and NZD have taken the brunt of the selling but EUR is also down slightly. Sterling on the other hand recovered overnight losses and is trading higher against the greenback on the hope for a rate hike next month. Investors were also encouraged by comments from Germany’s Merkel who suggested that sufficient progress will be made to take talks to their next step. With Canadian CPI and Retail sales due at 8:30am NY, the CAD is trading in a narrow range. We believe further USD gains are likely in the North American session as U.S. traders cheer the news.

*The MAIN THEMES I see today are*


*Trading Biases*

mildly -CAD, -AUD

*Today’s Ideas*

1. Sell EURUSD at 1.1803, Stop at 1.1833, Target 1.1783
2. Buy AUDNZD at market now 1,1228, Stop at 1.1198, Target 1.1248

Cancel ALL pending orders by 3:30PM NY / 19:30 GMT / 5:30AM AEST
Close ALL open day trades by 4PM NY / 20 GMT / 6AM AEST

Economic Data Calls for 10/20/17

Weekly Calendar Calls

Here’s what we are looking for in tomorrow’s economic reports (Oct 20, 2017) — Good Luck Trading!

1. GE PPI (2:00 NY Time) Bullish EUR – Potential for upside surprise given rise in wholesale price

2. ECB Current Account (4:00 NY Time) – No Trade – Weaker GE CA, stronger FR CA

3. CA CPI (8:30 NY Time) Bearish CAD – Potential for downside surprise given Sharp drop in price component of IVEY PMI

4. US Existing Home Sales (10:00 NY Time) Bearish USD – Potential for downside surprise given large drop in housing starts and building permits