Trade Plans for August 4

I'm trading again after nearly a month.

The theme across the Forex market today is economic recovery. Data from the past week are screaming that the worst may be over. As such, risk appetite is in the market.

For today, here are the pairs I am looking at:

AUD/USD - Australia's Housing Price Index (HPI) just came out at a whopping 4.2%, significantly better than the 2.1% expectation. The AUD has been in a rally for the past three hours, rising more than 40 pips. However, the pair is currently walking the upper bollinger band and is oversold. I will wait for the pair to drop to somewhere near 0.8406 (38.2% fibo and 20-period MVA) before going LONG. Also, at 12:30 today (Manila), the RBA releases their latest rate statement. No fireworks expected but then again...

GBP/USD - At 4:30 pm today (Manila), UK Construction PMI comes out, expected to be slightly better than previous. This could be another catalyst for continued move up of the Pound. the pair is currently oversold (RSI) and threading the upper bollinger band. Will wait for it to drop before going LONG.