Japan and Australia in focus
Key messages to come out of Japan, where after the press conference, the local central bank JPY began to strengthen. In our view, however, is the first choice of profits. Before extended sales strong downtrend we now expect several weeks of consolidation trading range. Rhetoric Japanese leaders remains strong and is seen to weaken the effort, but the question is if that happens.
Other important news comes from Australia, which, according to Finance Minister inflation under control and he begins to speculate on rate cuts. Next meeting of the Australian central bank is 5 February, but according to available reports and comments yet rate cuts expected.But remember the end of last year, when the RBA surprised and cut rate.
As regards developments in the monitored pair EUR / USD, so that looking at the daily chart showed indecisive development (doji candle). While the development of the day was pretty wild. After the publication of the German ZEW index price fell by 100 pips to the 1.3270 level where but quickly strengthened back. After the start of the U.S. session, the price returned near the daily low and then strengthened by the opening price. So even though the daily chart we decide doji candle, so from our perspective today were more active shoppers.
Even today, yet we feel that buying prevents 1.3300 level. Given that it is the third level tested within 24 hours, thus increasing the chances of it breaking. Today, however, not expected major macro news, so the more we tend to a scenario that could lead to a test below yesterday's low, but in this case we expect support around 1.3250 price drop any more stops. Towards the above test, we expect the level of 1.3350 and possibly 1.3370.
Waiting for the Japanese central bank
Last news from the section Czech markets:
12.12.2018 4 kroky k výběru spolehlivých oken
Michal Dvořák, TradeCentrum
Patrik Mackových, TopForex
Jonáš Mlýnek, LYNX
Zdeněk Ďuriš, EKKA-Gold
Štěpán Hájek, Bossa
Štěpán Křeček, BHS
Silvia Holá, xPartners
Jakub Petruška, Zlaťáky.cz
Patrik Hudec, GENERALI