Trading plan for 11/12/2017

The New Zealand Dollar is the star at the start of the new week in reaction to the election of the president of the RBNZ. The rest of the market is calmly awaiting the central bank marathon. The stock market in Asia is green. Japanese Nikkei225 increased by 0.6%, Hang Seng growing by 0.8%. It's calm on the commodity market. Crude Oil falls by 0.3% up to 57.2 USD, Gold is growing 0.1%. up to 1250 USD.

On Monday 11th of December, the event calendar is light in important news releases. Only data to be released are Retail Sales in Italy and JOLTs Job Openings from the US.

EUR/USD analysis for 11/12/2017:

In general, this week we have a central bank marathon with the main focus on the Fed, where the interest rate increase is almost certain. Banks from Switzerland, Norway, the United Kingdom and the Eurozone may also be interesting as all of them will make the interest rate decision later this week. Moreover, a series of inflation readings will provide information on chances for changes in monetary policy. The British Pound will be sensitive to information about Brexit agreements before the EU summit.

Let's now take a look at the EUR/USD technical picture at the H4 time frame in this quiet Monday morning. After retracing 50% of the previous swing up the market is ready for a bounce higher towards the first technical resistance at the level of 1.1807. The oversold market conditions support the temporary bullish outlook. The key level to the upside remains at 1.1961. The market might keep trading sideways as it awaits the central bank's interest rates decision (Fed on Wednesday, ECB on Thursday).

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Market Snapshot: USD/JPY breaks above 61% Fibo

The price of USD/JPY has broken above the 61% Fibo retracement at the level of 113.24 and managed to violate the technical resistance at the level of 113.44. New local high at the level of 113.68 is the key level for bears, as any violation of this high before the local low at the level of 113.09 would directly expose the level of 113.90 for a test.

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Market Snapshot: DAX30 Head and Shoulders pattern still on table

The price of German DAX is still hovering around the right shoulder zone as it opened with a gap up towards the level of 13,254. Only a violation of the level of 13, 254 and then 13,336 would invalidate the current trend reversal pattern and pushed the price higher towards the recent swing high.

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The material has been provided by InstaForex Company - www.instaforex.com