Planning on trading the U.S. retail sales report today? I’ve spotted forex trade setups on GBP/USD and USD/CHF that could work in case of upside or downside surprises!
As Forex Gump said in his U.S. retail sales trading guide, Uncle Sam’s leading indicators are pointing to a stronger reading in April. More specifically, the headline report is expected to show an 0.8% growth while the core reading is expected to grow by another 0.5%.
Strong retail sales numbers is good for the U.S. economy because a huge chunk of it depends on consumer activity. If we do see better-than-expected figures, then the Greenback will likely gain against its lower-yielding counterparts, if not across the board.
USD/CHF is the perfect pair to trade, as it’s currently being supported by a broken trend line and the 4-hour SMAs. It also doesn’t hurt that stochastic is almost at the oversold area. I’m thinking of buying at market and placing my stops just below the .9600 area. What do you think?
Here’s my setup in case the retail sales report disappoints! Aside from the long EUR/USD open trade, GBP/USD could also get a push from a weak dollar. It’s currently being supported by the 50% Fib and the 200 SMA on the 4-hour time frame. Not only that, but the 1.4400 support also lines up with a pretty solid area of interest back in March and mid-April. I’m thinking of buying at current levels and placing my stops just below the rising channel. Maybe aim for the previous highs to start?
How about you? Anyone out there also trading the U.S. retail sales release? What setups are you looking at? Holler if you want to share your two cents!
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