Trading plan for 19/01.2018

Yields of 10-year US Treasury Bonds are rising towards four-year highs, but this does not help the US Dollar, as the risk of a government shutdown threatens investors. The stock market in Asia drifted close to the Thursday reference point. Gold is higher a little, Crude Oil is losing 1.3%.

On Friday 19th of January, the event calendar is light in important news releases, but the market participants will keep an eye on Current Account data from Eurozone, Retail Sales With Auto Fuel data from the UK, Manufacturing Sales data from Canada and Preliminary University of Michigan Consumer Sentiment data from the US.

EUR/USD analysis for 19/01/2018:

The House of Representatives approved the law on the extension of government administration financing until February 16, however, Democrats say they are able to block a document in the Senate. The deadline for extending funding is today at midnight. The risk of freezing administration work and suspending payouts for employees negatively affects the condition of the USD. Today, the US Dollar losing all of the main currencies with the exception of NZD. The strongest is Yen with USD/JPY approaching the level of 110.70.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has managed to break out from the channel and now is heading higher towards the level of 1.2321, but the upward momentum still looks weak and there is a chance of another pull-back towards the level of 1.2193 or 1.2155. The nearest resistance is seen at the level of 1.2321 and the next one is seen at the level of 1.2400.

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Market Snapshot: Crude Oil on the channel support

The price of Crude Oil has pulled-back towards the level of 62. 80, which the golden channel upper support line and lies just above the important technical support at the level of 62.67. The longer time frame trend is still up, so another rally towards the high at the level of 64.89 should be expected.

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Market Snapshot: DAX close to the resistance

The price of German DAX index bounced up from the support at the level of 13,108 and currently is trading close to the technical resistance level of 13, 422. If this level is violated, then the price might rally towards the swing high at the level of 13, 515 and test it as well.

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