Daily Market Forecast, December 27, 2017 – EUR/USD, Gold, Crude Oil, USD/JPY, GBP/USD
Gold and U.S Crude Oil have broken important short-term resistance and will provide traders with opportunities. However, risk management remains essential as volumes remain thin because of the holiday season.
EUR/USD: Choppy Trading Dominating
The Euro traded sideways on Tuesday as volumes in forex proved to be very light. The European currency is near the 1.1850 level against the U.S Dollar. As more investors return to the market the Euro may look attractive at its current values. However, traders should expect choppy trading to dominate near term.
Gold: Buying Momentum Builds
Gold has continued to see buying momentum and its value as of this morning is close to 1281.00 U.S Dollars an ounce. Trading volumes remain light because many large investors are still on the sideline as they celebrate the holiday season. However, the precious metal has been able to break short-term resistance and traders may be tempted to remain buyers.
Crude Oil: Important Resistance Surpassed
Crude Oil broke above 60.00 U.S Dollars a barrel on Tuesday as speculators continue to be bullish. U.S Crude Oil has been able to surpass important resistance. Traders may be tempted to look for upside value but should be ready for some pushback in the coming days.
GBP/USD: Consolidation May Lose Grip
The Pound starts Wednesday essentially with the same value it had yesterday against the U.S Dollar. The 1.3370 juncture has been strong. As U.K traders return from their Boxing Day holiday the Pound could break out of its consolidation, but the currency will likely continue to range trade.
USD/JPY: Cautious Trading for the Yen
The Yen has seen tight trading like the other major currencies. The Japanese currency is near 113.25 against the U.S Dollar. Trading volumes remain thin on the Nikkei Index and cautious. The Yen remains within its weaker range against the U.S Dollar, but some traders may be tempted to look for a reversal to develop and for the Yen to strengthen.
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire
