Trading plan for 17/01/2018

The foreign exchange market experiences a liquidity increase, from which the USD finally finishes as a winner. The EUR / USD tended to fluctuate, first breaking to 1.2325 to move back to 1.2220. USD / JPY for a while scored 110.18, but now it is already at 110.80. AUD ignores good economic data and remains relatively calm. The stock market in Asia in mixed moods. Gold is finally in a correction.

On Wednesday 17th of January, the main event of the day is the Bank of Canada interest rate decision, but market participants should keep an eye on Consumer Price Index data from the Eurozone, Industrial Production and Capacity Utilization Rate data from the US.

EUR/USD analysis for 17/01/2018:

The US Congress is still working on extending funding for the government administration from January 19 to February 16, thereby trying to avoid the so-called government shutdown. The Republican bill includes concessions for Democrats to gain partial support. This is in line with market expectations.

The USD managed to cope with the sudden sale from the beginning of the Asian part of the session. Movements lack a direct causative factor, which may mean that the market was looking for the last spurt to break the market after Tuesday's consolidation. After a failed attempt, it switched to profit taking.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The local new high was made at the level of 1.2321 and now the price is in the corrective cycle. The nearest technical support is seen at the level of 1.2193, so it should be tested again soon. The next technical support is seen at the level of 1.2155, but the key technical support is still at the level of 1.2090. The overbought market conditions support the idea of a corrective slide.


Market Snapshot: AUD/USD hits 78% Fibo

The price of AUD/USD has retraced 78% of the previous swing down and made a new marginal high at the level of 0.7998. Due to the overbought market conditions and growing bearish divergence, the price should now pull-back from the highs to test the level of 0.7934 and possibly 0.7907. Please mind the channel lines.


Market Snapshot: GOLD makes a local Double Top

The price of Gold has made a Double Top technical pattern around the level of $1,344 and might soon start to pull-back from the highs. The nearest technical support is seen at the level of $1,331 and $1,322. Please notice the growing bearish divergence and overbought market conditions support the view.


The material has been provided by InstaForex Company -