The risk sentiment remains under pressure after the comments by China about the countermeasures against the US tariffs. Thus, the AUD/USD and the USD/JPY pairs will be under our attention.
News to trade on December 18
- During the Asian session the risk-off sentiment across the markets increased as China’s president Xi Jinping failed to bring updates on the trade truce between the US and China during his speech. As a result, the Japanese yen strengthened against the US Dollar. For now, it has already tested the strong support at $112.49. If it is broken, the next support is at 111.61. If the USD strengthens, the first resistance will lie at 113.11. If this level is broken, bulls will target the next resistance at 113.98.
- The New Zealand dollar has been rising on the upbeat level of business confidence. The NZD business confidence increased to -24.1 in December (vs. -37.1 in November). As a result, the kiwi has already crossed the 200-day MA. If NZD/USD continues to move up, it will retest the 0.6876 resistance. If this level is broken, the next resistance is at 0.6961. Otherwise, if the USD gains its strength, the pair will be pulled towards the support at 0.6742.
- The euro has been rising due to the weak US Dollar. The Italian and French budget deficits do not affect the market as much as they did. For now, the main focus for the pair remains on the tomorrow's Fed decision on its interest rate and monetary policy. If bulls continue to push the pair up, it will rise towards the resistance at 1.1408. If the USD is supported ahead of the Fed decision, the pair will fall to the support at 1.1338.
- The British Prime Minister Theresa May announced the vote on the Brexit plan in the House of Commons to be on January 14. Today, she plans to discuss the chances of a no deal with her cabinet. As the date for the vote brought more certainty, GBP/USD has started to recover. In case of more positive news, the pair will rise further to the resistance at 1.2735. In case of more uncertainty or negative comments, the cable will stick below the support at 1.2605. The next support is placed at 1.2452.
- The prices for WTI and Brent keep falling down on the news about the US oversupply. The price for WTI has already tested the support at $48.67. More news about increased oil production will pull its price further to the next support at $47. On the other hand, more hints from OPEC+ on the future production cut will push the WTI price towards the resistance at $49.88. The next resistance lies at $51.55.
- Now let's look at Brent's chart. For now, it has been targeting the support at $57.63. If bulls get back their strength, the price for Brent will rise towards the resistance at $58.92. If it's broken, the next resistance is placed at $60.62.
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