Sample Category Title

Pivot (invalidation): 1.1375

Our preference Short positions below 1.1375 with targets at 1.1345 & 1.1330 in extension.

Alternative scenario Above 1.1375 look for further upside with 1.1400 & 1.1425 as targets.

Comment As Long as the resistance at 1.1375 is not surpassed, the risk of the break below 1.1345 remains high.

Pivot (invalidation): 5.3220

Our preference Long positions above 5.3220 with targets at 5.3700 & 5.4000 in extension.

Alternative scenario Below 5.3220 look for further downside with 5.2970 & 5.2680 as targets.

Comment The RSI advocates for further upside.

Pivot (invalidation): 0.7205

Our preference Short positions below 0.7205 with targets at 0.7175 & 0.7160 in extension.

Alternative scenario Above 0.7205 look for further upside with 0.7220 & 0.7235 as targets.

Comment As Long as the resistance at 0.7205 is not surpassed, the risk of the break below 0.7175 remains high.

Eurozone PMI manufacturing dropped to 51.4 in December, down from 51.8, missed expectation of 51.9. It's a 34-month low. PMI services dropped to 51.4, down from 53.4, missed expectation of 53.4. It's a 49-month low. PMI composite dropped to 51.3, down from 52.7, a 49-month low.

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

"The Eurozone economy saw a disappointing end to 2018, with growth slowing to the weakest for four years. While some of the slowdown reflected disruptions to business and travel arising from the 'yellow vest' protests in France, the weaker picture also reflects growing evidence that the underlying rate of economic growth has slowed across the euro area as a whole.

"Companies are worried about the global economic and political climate, with trade wars and Brexit adding to increased political tensions within the euro area. The surveys also point to further signs that the struggling autos sector continued to act as a drag on the region's economy.

"While GDP growth in the fourth quarter as a whole is indicated at almost 0.3%, the surveys point to quarterly GDP growth momentum slipping closer to 0.1% in December alone. Forward-looking indicators such as new orders and future expectations remaining subdued suggest that demand growth is stalling, adding to downside risks to the immediate outlook.

"The survey also brought signs that lower oil prices are feeding through to lower selling price inflation, though price trends remained very varied across the region. Germany continues to report the highest rates of increase, in part linked to higher wage growth."

Full release here.

Pivot (invalidation): 1.3380

Our preference Short positions below 1.3380 with targets at 1.3340 & 1.3320 in extension.

Alternative scenario Above 1.3380 look for further upside with 1.3420 & 1.3445 as targets.

Comment The upward potential is likely to be limited by the resistance at 1.3380

Pivot (invalidation): 0.9910

Our preference Long positions above 0.9910 with targets at 0.9965 & 0.9990 in extension.

Alternative scenario Below 0.9910 look for further downside with 0.9890 & 0.9865 as targets.

Comment Technically the RSI is above its neutrality area at 50.

Pivot (invalidation): 2685.00

Our preference Short positions below 2685.00 with targets at 2623.00 & 2582.00 in extension.

Alternative scenario Above 2685.00 look for further upside with 2708.00 & 2735.00 as targets.

Comment The RSI is mixed to bearish.

Pivot (invalidation): 10890.00

Our preference Long positions above 10890.00 with targets at 10990.00 & 11060.00 in extension.

Alternative scenario Below 10890.00 look for further downside with 10770.00 & 10680.00 as targets.

Comment A support base at 10890.00 has formed and has allowed for a temporary stabilisation.

Germany PMI manufacturing dropped to 51.5, down from 51.8, missed expectation of 51.7. It's a 33-month low. PMI services dropped to 52.5, down from 53.3, missed expectation of 53.5. It's the lowest in 7 months. PMI composite dropped to 52.2, down from 52.3, a 48-month low.

Commenting on the flash PMI data, Phil Smith, Principal Economist at IHS Markit said:

"The PMI data disappointed again in December, indicating the continuation of only a modest rate of underlying growth across Germany's private sector. Furthermore, with new orders close to stalling in December and firms reporting reduced optimism towards the outlook, there's a lack of momentum heading into the New Year.

"It's a stark contrast from the situation this time last year. Reports of an economy close to overheating have been supplanted by concerns about an increasingly uncertain political backdrop, trade wars and a struggling autos industry.

"The survey's measures of output and new orders diverged further from that of employment as December saw another solid – and slightly accelerated – round of job creation across both manufacturing and services. With firms now eating into backlogs of work at a faster rate, the indication is that a renewed slowdown in hiring is increasing likely."

Full release here.

Pivot (invalidation): 1244.00

Our preference Short positions below 1244.00 with targets at 1239.00 & 1236.00 in extension.

Alternative scenario Above 1244.00 look for further upside with 1245.50 & 1247.00 as targets.

Comment The RSI is mixed to bearish.