Forex News: Final Trading Day of 2017!
Forex News: The pair continued on a bullish note yesterday and reached the long term resistance at 1.1945. Part of the reason behind the climb was the low trading volume and soft U.S. economic data.
Today is the last trading day of 2017 and this means that we may see irregular price action, possible reversals or even strong directional movement, thus caution is advised through the duration of the day. Strictly from a technical standpoint, the Relative Strength Index is in overbought territory and price is facing a strong resistance zone (1.1945 – 1.1950), so we expect to see a bounce lower. If 1.1950 is breached, the next big hurdle is 1.2000 but we don’t expect to see a touch of that barrier.
The German Preliminary Consumer Price Index will be today’s only notable release but due to the fact that it’s the final trading session of the year, the impact of this indicator might be muted. Under normal circumstances a higher reading than the anticipated 0.5% (previous 0.3%) strengthens the Euro; the time of release is 1:00 pm GMT.
The Pound bulls took the pair above 1.3420 but price paused at the next resistance (1.3450). From a longer term perspective the pair is still in a range, without a clear bias.
The level at 1.3450 is a key resistance for long term movement, so it’s very possible to see a bounce lower from here but on the other hand, the low trading volume can make it easier for the bulls to break the level. Trading will be affected by end-of-year choppiness, so caution is recommended.
Today is yet another lacklustre day for the Pound from a fundamental standpoint as no major indicators will be released. We wish you a Happy New Year and a prosperous 2018!
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.