FX.co ★ Trading plan for EUR/USD and GBP/USD on October 17

Dollar traded downward all throughout Monday, weakening as much as it did last Friday. Meanwhile, pound rose slightly more than euro, mainly due to the completely empty macroeconomic calendar.

All this points at an impending correction, especially amid the release of data on US retail sales, which forecasts say will slow from 2.5% to 1.5%, and the report on industrial production, which will decline from 0.2% to -0.8%. Today's data may be the first in weeks to show a significant deterioration in the situation in the US economy.

EUR/USD slowed its decline around the support level of 1.0500, leading to a decrease in short positions and a rebound in the pair. Although demand recovered a bit and temporarily pushed euro above 1.0550, the trend remains bearish, so a retracement will likely happen.

GBP/USD traded upwards, hitting the support level of 1.2150, where a decrease in the volume of short positions occurred. The pair needs to stay above 1.2230 in order for a retracement to happen. Otherwise, the price will return to the level of 1.2150.