The beginning of the week on the Asian stock exchange is relatively successful. The MSCI regional index is effectively returning to its 10-year highs, which should be seen as the aftermath of the phenomenal entry in 2018 by the New York indexes. Relatively positive moods in Shanghai as Shanghai Composite Index rises 0.2%. The reshuffles on the industrial metal market do not have a positive impact on the valuation of the Australian dollar (-0.3%) pushing AUD / USD towards 0.7840. In the case of EUR / USD, we should talk about starting a new attempt to place the price below the psychological level of 1.2000, which currently results in 0.2% drop of the common currency.

On Monday 8th of January, the event calendar is light in important data releases, but the market participants will keep an eye on CPI data from Switzerland, Halifax House Price Index data from the UK and Sentix Investor Confidence data from the Eurozone.

EUR/USD analysis for 08/01/2018:

The start of the week is slow, as is usually the case after the publication of the US labor market report. Nevertheless, there are some important data releases during this week. In the US, the Friday's CPI reading will be crucial, but where there is little chance of a clear acceleration. The minutes of the ECB meeting should confirm the bank's dovish attitude on Thursday. In addition, the market participants will get data on industrial output from Euroland and the UK on Tuesday and Wednesday, and retail sales from the US (Friday) and Australia (Thursday).

Let's now take a look at the EUR/USD technical picture at the H4 time frame at the beginning of the week. The market has broken below the technical support at the round number of 1.2000 and currently is heading towards the level of 1.1961 - 1.1940, which should provide another support for the price. The falling momentum supports the short-term bearish outlook.

Market Snapshot: DAX invalidates H&S pattern

After three tests of the Head & Shoulders pattern neckline, the idea was abandoned. In the meantime, the price of DAX headed higher towards the resistance at the level of 13, 336 and broke it this very morning. The next technical resistance for the price is seen at the level of 13, 515 ( November's highs).

Market Snapshot: DXY testing the local resistance

The price of US Dollar Index has tested the local resistance at the level of 92.28, so if the momentum continues to be strong, the next technical resistance is seen at the level of 92.49. Bounce from the oversold market conditions and bullish divergence support the temporary bullish outlook.