The new week starts well with the US Dollar, although the changes are not big enough to look for a specific justification for the willingness of market participants to take profits off the table. The stock market in Asia has a mixed session behind, Nikkei 225, for a moment, enjoyed an increase of 0.65%, but eventually closed at the level of Friday's close. Shanghai Composite loses 1.0%. There is nothing interesting in the oil and gold markets, both are in consolidation.
On Monday 29th of January, the event calendar is light with important news releases, but market participants should keep an eye on the Personal Income and Personal Spending data from the US and Trade Balance data from New Zealand.
Analysis of EUR/USD for 29/01/2018:
On Sunday, a hawkish member of the ECB Klaas Knot said that "there is no single reason to continue the program" of the asset purchase. "The program has done what could realistically be expected of it," Knot, who also heads the Dutch Central Bank, said in an interview on the TV talk show Buitenhof on Sunday.The market has not reacted to these words because the position of Knot is nothing new. EUR / USD managed to move away to 1.2385 in a relatively calm session, although the opening of trade in Europe brings a return in demand.
Let's now take a look at the EUR/USD technical picture on the H4 time frame. The market is still in a corrective cycle after the high at the level of 1.2537 was made. The price has respected the channel support and bounced nicely twice off it.The market conditions are overbought, so the down move might continue a little longer. The next technical support is seen at the level of 1.2324.
Market Snapshot: gold at the critical level
The price of gold has hit the level of $1,344, which is a key technical support on the H4 time frame. At the same time, this level is a purple trend line support, so any violation of this level would lead to test the local low at the level of $1,340 and then the level of $1,321. Weak momentum at the fifty level supports the negative outlook.
Market Snapshot: DAX retraces 38% and bounces
The German Dax index has retraced 38% of the previous swing up and it does not make a new low below the level of 13,136 yet. That level is the key level for the further down moves as it lies close tot he 50% Fibo retracement as well. Only a sustained breakout below this level will open the road towards the technical support at the level of 12,728.
