The lead financial stories of 2017 are dominating headlines thus far in 2018. Bitcoin and U.S. equities appear destined to be permanent fixtures in every trader’s mind. Today’s session returned the DJIA and S&P 500 to near-all-time highs. On the other hand, Bitcoin suffered devastating losses, driving valuations under $10,000. Use of the term “bubble” is becoming more and more prevalent in the reporting of both asset classes.

It is time once again to take a look at the important economic events of the next 24 hours:

Country                             Event

U.S.                                   API and EIA Crude Oil Stocks, Construction Reports

Australia                           Employment (Dec.)

China                                GDP (Q4)

Japan                                Foreign Investment (Jan. 1)

There are several potential drivers of volatility in the coming hours. I will be keeping close tabs on the GDP numbers out of China. After the recent comments regarding U.S. securities, China’s economic health will be under the microscope. If Chinese GDP lags more than expected, look for heavy action in the international debt markets.

Open positions in the Aussie and USD/JPY must be tended during the Australian employment reports and Japanese investment numbers. Any surprises may influence recent pricing trends.

EUR/USD Technicals

The EUR/USD is experiencing consolidation after the recent bull run. With a bit of luck, we may get an opportunity to go long from a key Fibonacci level.

It is a challenge to find levels on the daily chart during breakaway trends. For the immediate future, there are only two on my radar:

• Resistance(1): Psyche level, 1.2400
• Support(1): 38% Fibonacci retracement of current bull run, 1.2167

Bottom Line: Recent trends across the majors have provided an abundance of Fibonacci trades. This one is a long from just above the 38% retracement at 1.2171. With the initial stop at 1.2144, this trade may be executed with a 1:1, 1:2, or 1:3 risk vs reward (R/R). It is a great chance to rack up a potentially large return with the prevailing trend.

As always, trade smart and for tomorrow!