29.12.201710:59 Forex Analysis & Reviews: Trading plan for 29/12/2017

Just before the start of the last session in 2017 on the Old Continent, the leader is NZD/USD with 0.3% gains. Based on the upcoming data on inflationary pressure, it may partly count the Euro (0.1%), which is trying to stabilize the EUR/USD rate above 1.1950. The pound sterling (0.2%) and the Japanese yen (0.2%) record a slightly more bold move.

On Friday 29th of December, the event calendar is light in important economic releases, but the market participants will keep an eye on the Eurozone Money Supply data, German Preliminary Consumer Price Index data and Baker Hughes U.S. Rig Count.

EUR/USD analysis for 28/12/2017:

In the earlier economic calendar, investors' attention was drawn to the American economic data again. The amount of positive surprise was ensured by stocks of wholesalers, which from month to month recorded 0.7% jump to 0.3% expected by the market consensus. In the meantime, the newly filed applications for unemployment benefit were published, which indicated stabilization of the observed trend (245,000, previously: 245,000). The ISM index was boosted by the barometer of the economic climate prepared by Chicago economists. The 67.6 point indicator clearly surprised the expectations that the rally was to be expected from 63.9 points to 62.0 points. Behind this movement, there is, among others, a more substantial increase in new orders or the strongest sentiment among consumers since September.Nevertheless, all the good data did not help much the US Dollar as it is deteriorating slowly across the board.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has broken above the technical resistance at the level of 1.1961 and currently is rallying higher towards the next technical resistance at the level of 1.2000. The market conditions are overbought, but the momentum remains strong. The nearest technical support is seen at the level of 1.1941.

Market Snapshot: Crude Oil trading above $60.00

The price of Crude Oil has made another higher high above the level of $60 at $60.33. Nevertheless, due to the overbought market conditions and clear bearish divergence at the H4 time frame, the price might start to pull-back from the elevated levels and test the technical support at the level of $60.00 and in a case of extension $59.50.

Market Snapshot: DAX at the key support

The German DAX index is trading at the key support at the level of 12,953 after the right shoulder high was made at the level of 13,306. If this level will be broken, then the next support is seen at the level of 12,848, just above the neckline of the Head & Shoulders technical pattern. Breakout to the downside is still possible.