Trading plan for 15/12/2017

The US Dollar slightly loses overnight because there are obstacles on the way to approval of the US Tax Act. The stock market is restless in the wake of the weak Thursday session in Europe and the US. Nikkei225 fell 0.6% and Hang Seng lost 13%. Gold minimally benefits from Dollar problems and the price of an ounce is consolidated at 1255 USD. Crude oil WTI drifts close to 57.2 USD.

On Friday 15th of December, the event calendar is light in important economic releases. There were some data from Japan released overnight (Tankan Manufacturing and Non-Manufacturing Index). So Manufacturing Sales from Canada and Empire State Manufacturing Index and Industrial Production data from the US are the missing data left before the weekend.

EUR/USD analysis for 15/12/2017:

Wednesday's increase in the federal fund's rate by FOMC members has launched a marathon with central banks. During the Thursday trading session, the volatility of major currency pairs was influenced by decisions made on the Old Continent. Before the decision of the European Central Bank, the volatility of euro-related currency pairs tried to conquer initial estimates of PMI indices. In case of a measure reflecting the sentiment in industry one should speak about establishing a new high (60.6 points), which was not widely expected by the surveyed market participants (59.7 points). The very good data on the accelerating economy did not cause any significant reshuffle in the market, neither did the ECB decision to leave the interest rates unchanged. After very busy week today's trading session should be much calmer as Christmas are just around the corner.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. After the ECB decision, the market rallied, but bulls were not strong enough to break out above the 61% Fibo at the level of 1.1855 and the price dropped towards the middle of the trading zone. The momentum is still positive, but is hovering around its fifty level as liquidity is diminishing from the market. The nearest technical support is seen at the level of 1.1725.

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Market Snapshot: Gold about to test the resistance?

The price of Gold bounced from the technical support at the level of $1,235, broke through the local resistance at the level of $1,251 and currently is about to test the key resistance zone at the level of $1,260 - $1,265. The momentum remains strong, but the market conditions are starting to look overbought.

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Market Snapshot: DAX still developing the Head & Shoulders pattern

The price of German DAX has dropped again and broke through the technical support at the level of 13,085. The right shoulder is still in progress as the price is moving inside of the channel. The next technical support is seen at the level of 12.953.

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