Trading signals - Lower European political uncertainty weakened the demand for safe haven assets

USD/JPY
Japanese yen weakened amid a decline in political uncertainty in Europe and easing geopolitical risks.

• The corporate reporting season in the US supports demand for equity assets;
• Expectations of Trump's tax reform strengthen the demand for equity and might support the US dollar;
• The technical upward correction of the US currency is possible in the short term.

Technical analysis and recommendations: Short-term longs.
The first serious resistance is at the level of 110.55. We expect profit taking and pullback from this level. Support is at levels of 109.70 (the upper limit of the gap). Careful longs after a pullback might be interesting.

EUR/USD
Lower political uncertainty in Europe may support EUR in the short term. However, upside may be limited. USD rebound may pressure EUR.
Technical analysis and recommendations: Careful longs at 1.0840-1.0850.
If it settles above 1.0830, the pair may develop upward impulse up to 1.1020.

Brent Oil
Weakness of the oil market continues. Brent futures dropped below the level of 52 dollars per barrel.
The current decline may not be justified from a fundamental point of view;
In the market focus there is data on oil inventories from API, as well as official US data on oil inventories from the US Department of Energy;
The meeting of OPEC representatives ended with the confirmation of continuing agreements to cut oil production, which is a good sign for market.
Technical analysis and recommendations: Longs at 51.30 seem to be justified.
There are massive long-term support level around 51.10-51.30. Longs started around this level may be of interest for medium-term positions.

Fort Financial Services
This trading analysis is for informational purposes only and is not intended to be a strict recommendation for action or an offer for the purchase or sale of any currency, future or stock. Publishing the information we do not try or to attract any funds or deposits. We share our analytical view of current market situation and we don’t have any open position in instruments discussed and no plans to open any positions. Any person considering this research should carefully consider the risks associated with this and the level of trading experience.