Trading plan for October 19

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Economic Calendar: During the Asian session, the GDP for China was released. The economic growth of the country slowed from the previous quarter down to 6.5%. Trade tensions with the US and problems in the industrial sector are considered as the main reasons for today’s weak economic growth of China. As we can see, there are three main releases for the Canadian dollar today. They are consumer inflation index, retail sales and core retail sales. Analysts expect the level of retail sales to increase by 0.3%. According to experts, CPI will increase by 0.1% as well as the level of core retail sales. If the actual data is higher, the CAD will be supported.

Charts: The problems with Italian budget keep being in focus today. The difference in the yields between the Italian and German 10-year bonds continues to rise as the EU is not happy with the Italian budget plans. Today the pair is trading below the support at 1.1456. Further news regarding the Italian budget problem will make the EUR weaker. In that case, the pair will drop to the support at 1.1354. If positive news occurs, the pair will be able to stick above 1.1456. USD/CAD is trading in the red zone for now. Up to this moment, the pair is testing the support at 1.3062 (100 day MA). If today’s releases are higher, than the forecasts, the CAD will be supported. In that case, the pair will fall to the support at 1.3012 (50 day MA). Otherwise, it will stick above the resistance at 1.3086 Despite the negative news concerning Australian closest trade partner, the AUD is among the gainers today. AUD/USD is moving to the resistance at 0.7152. If the USD is strong, the pair will fall below the support at 0.7096 targeting the next support at 0.7053.