Trading plan for 19/12/2017

One step closer to Christmas means one degree lower on the scale of volatility in financial markets. Trading in major currencies is barely noticeable, and the situation has practically not changed since Monday evening. EUR / USD has anchored close to 1.18, USD / JPY orbits around 112.50, and GBP / USD returns to 1.3380. TheUS Dollar is waiting for the adoption of the tax bill, and reports from Washington suggest that the Republicans have enough votes. Gold slightly rallies above 10-day highs.

On Tuesday 19th of December, the event calendar is relatively busy with important data releases. Germany will post Ifo Business Climate, Expectations, and Current Assesment data and the US will present Building Permits, Housing Starts Current Account and CB Consumer Confidence data.

EUR/USD analysis for 19/12/2017:

The tradition of the boring course of the first sessions at the beginning of the week on the currency market has been undoubtedly sustained. This time, the emptiness in the economic calendar was accompanied by the prospect of the upcoming Christmas, which contributed to a significant narrowing of volatility on the main currency pairs. The European indexes survive their five minutes, which in part have benefited Donald Trump presents bringing the prospect of tax reform under the Christmas tree. Against the background of developing countries' currencies, South African rand (4.3%) stood out due to the election of Cyril Ramaphosy, the current vice-president of South Africa, as the leader of the social democratic African National Congress. There is a little bit more data to be published today, but it looks like the volatility will stay at the same levels.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market remains closed between the levels of 1.1725 - 1.1855 and only a sustained breakout above or below one of this levels would be considered as a game changer. Moreover, the momentum indicator remains hovering around its fifty level, which supports the directionless market scenario.


Market Snapshot: Gold breaks higher

The price of Gold has managed to break out a little bit higher again and currently is trading at the end of the resistance zone at the level of $1,265. The momentum is still strong, but the market conditions look overbought, so there is a chance for a false breakout and reverse for the current levels. The nearest support is seen at the level of $1,260


Market Snapshot: USD/JPY bounces from 61% Fibo

The price of USD/JPY has almost touched the 61% Fibo at the level of 111.94 as it bounced from the level of 112.04. Currently, the price got back under the moving average around the level of 112.75 in somehow oversold market conditions. Nevertheless, the neutral momentum does not help the bull camp to push higher towards the next technical resistance at the level of 113.09 so far.


The material has been provided by InstaForex Company -