Trading plan 11/10/2017
The overall picture: The euro has turned to growth.
Catalonia pushed the growth of EUR/USD.
On Tuesday evening, the head of Catalonia said that he was postponing the proclamation of independence. The deputies of the Catalan Parliament signed a declaration of independence but it has no legal force. The authorities of Catalonia withdrew, faced with strong resistance from both the Spanish authorities and opponents of independence inside Catalonia, both among citizens and among businesses.
The EU firmly stated that it would not accept Catalonia in the EU if the exit from Spain would not be backed by an agreement with Madrid.
One way or another, the weakening of the crisis around Catalonia has strengthened the euro. The EUR/USD rate reached an important level of 1.1835 on Wednesday morning and is now being corrected.
We expect the EUR/USD pair to grow with the target of 1.1980. We buy euro for this purpose.
Alternative and signal cancellation: Breakthrough down at 1.1668, from this level we will sell.
