European Markets Are Trading Higher After The Services PMI Data

• EUR/USD- has been selling off sharply this morning and it is bouncing near the support zone of 1.3549. The upside resistance for this pair could be near the 1.3779
• USD/JPY- the pair is trading below the downward rend line on a 30 minute time frame. The price needs to break the 100 resistance for any upward move. The near support could be near the 103.73 and resistance 104.92
• GBP/USD- the economic data- Services PMI has not helped the pair when it fell short of expectations. The near term support could be near the 1.6215 and the resistance could be near the 1.6473.

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Indices

• Asian Markets Asian markets closed mostly lower on the first trading day of the week. The Nikkei index was the best performer during the session and it closed lower with a loss of 2.35%. The index is up nearly by 2.65 % in the past 5 days
• European stock markets are steady during the early hours of trading. The F TSE MIB index is the performing index during the session and it is trading up with a gain of 0.49%. The index is up almost by 2.38% in the past 5 days.
• US Indices futures are also trading slightly higher ahead of the ISM non manufacturing economic data. Most indices closed lower on Friday and the NASDAQ index was the worst performer with a loss of 0.27%

• The Chinese manufacturing activity also cooled off during the month of December.
• The Spanish economic data- Services PMI came in at 54.2 while the expectations were for 51.1
• The Italian services PMI fell short of expectations with the final reading of 47.9 while the expectations were 48.9

• Risk management is the key for a successful trading

• Gold. The precious metal is showing some sign of strength however, before we can say anything bullish about the metal, the resistance of $1270 is still a challenge. The support is near the $1212 level.
• Crude Oil: The black gold is recovering from its early losses this morning but a break of the 93.50 level could open the floor towards the next target of 92
• VIX- Volatility index dropped by 0.94% on Friday

09:30 GMT

GBP – Services PMI
15:00 GMT

USD - ISM Non – Manufacturing PMI
Previous: 53.9

22:30 GMT
USD – FED Chairman Nomination vote

Trend
The AUD is trending up against the dollar, while the CAD and GBP are trading lower against the dollar on an intra-day basis.

Disclosure & Disclaimer:The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.

by Naeem Aslam