Trading plan for 04/01/2018

The Wednesday rebound of the US dollar has been stopped today. EUR/USD is up to 1.20 and USD/JPY returns from 112.75. AUD, NZD and NOK perform best, which is partially because of rising commodity prices. Yesterday's records on Wall Street are pulling the Asian indices up.

On Thursday 4th of January 2018, the event calendar has plenty of data to be released. The great part of the data is the Eurozone PMI Composite and PMI Services data releases from France, Italy, Spain, and Germany. Moreover, the UK will post the PMI Services data as well, together with the Net Lending to Individuals and Mortgage Approvals data. Later during the US session, Canada will post Raw Materials Price Index data and the US will post ADP Non-Farm Employment Change data as well as Unemployment Claims and Crude Oil Inventories data.

EUR/USD analysis for 04/10/2018:

After better-than-expected PMI Manufacturing data from across the eurozone that confirmed the high level of performance of the European economy, today the other two PMI indicators will be published: PMI Services and PMI Composite. As it was before, the market participants expect the PMI data to be at least in line with expectations, not worse. In this situation, any disappointment might start to weight on the euro-related pairs and increase volatility in the market.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The market has tested the level of 1.2003 and is trying to resume the uptrend. Nevertheless, the conditions remain overbought and if the data disappoints market participants, the price might slide more towards the level of 1.1961.

analytics5a4deff1436b0.jpg

Market Snapshot: SPY makes another all-time high

The price of SPY (SP500 ETF) has made another higher high in the uptrend as it hit the level of 270.62. The nearest technical support will now be present at the level of 268.51 as the sequence of higher highs and higher lows continue in the overbought market conditions.

analytics5a4deffc9ab07.jpg

Market Snapshot: DAX bounces from the support

The price of German DAX Index has made a lower low at the level of 12,728 , but the market refused to continue the slide towards the level of 12,676 and bounced back up instead. Currently, the price has hit the technical resistance at the level of 13,108, so the outlook for the Head & Shoulders pattern to complete is getting less probable. Any violation of the level of 13, 336 will invalidate this scenario.

analytics5a4df00690ab1.jpg

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