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The DAX index has ticked higher in the Tuesday session. Currently, the DAX is at 13,140.00, up 0.12% on the day. On the release front, German ZEW Economic Sentiment slowed to 17.4, short of the estimate of 17.9 points. Eurozone ZEW Economic Sentiment also softened, with a reading of 29.0. This was short of the 30.2 points. Later in the day, ECB President Mario Draghi speaks at an event in Frankfurt. The US will release PPI, an important inflation indicator. On Wednesday, Germany and the US release CPI reports. As well, the Federal Reserve is expected to raise the benchmark rate to a range between 1.25% to 1.50%.

In Germany and the eurozone, investor confidence weakened in December. The well-respected ZEW Economic Sentiment indicators, a confidence barometer of institutional investors, missed their forecasts. Still, the readings point to optimism – Germany’s economy continues to look sharp, and this had led the way for the eurozone, which has enjoyed solid growth in 2017. At the same time, investors have to keep an eye on political developments as well, and there are some worrisome developments. Germany still remains without a government, and uncertainty over Brexit continues to hover over the European Union. Like the euro, German stock markets are showing a muted reaction to the soft ZEW readings.

Will the Fed press the rate trigger on Wednesday?. The markets are expecting a quarter-point rate hike from the Fed later on Wednesday. Even though this move has been priced in, rate hikes tend to trigger a surge of confidence among investors, and could trigger gains in global stock markets. Another rate hike is expected in January, with fed futures pricing a rate hike at 87%. The Fed has hinted that it could raise rates up to three times in 2018, and this upward movement in rates will likely propel the US dollar upwards. The US labor market remains at full capacity and various sectors in the economy are reporting a lack of workers. Still, this has not translated into stronger wage growth, despite predictions from Janet Yellen and other Fed policymakers that a lack of workers is bound to push up wages.

It's been a quiet start to the week for the euro. In the Tuesday session, EUR/USD is trading at 1.1774, up 0.04% on the day. In economic news, German ZEW Economic Sentiment slowed to 17.4, short of the estimate of 17.9 points. Eurozone ZEW Economic Sentiment also softened, with a reading of 29.0. This was short of the 30.2 points. Later in the day, ECB President Mario Draghi speaks at an event in Frankfurt. The US will release PPI, an important inflation indicator. On Wednesday, Germany the US release CPI reports. As well, the Federal Reserve is expected to raise rates to a range between 1.25% to 1.50%.

The well-respected ZEW Economic Sentiment indicator, a confidence barometer of institutional investors, slowed in December, in both Germany and the eurozone. Still, the readings point to optimism – Germany's economy continues to look sharp, and this had led the way for the eurozone, which has enjoyed solid growth in 2017. Still, investors have to keep an eye on political developments as well, and there are some worrisome developments. Germany still remains without a government, and uncertainty over Brexit continues to hover over the European Union. The euro has shrugged off the soft ZEW readings, showing little change in the Tuesday session.

The markets are expecting a quarter-point rate hike from the Fed later on Wednesday. Even though this move has been priced in, rate hikes tend to trigger a surge of confidence among investors, and also makes the US dollar more attractive against its rivals. Traders should therefore be prepared for the US dollar to record gains after the rate announcement. Another rate hike is expected in January, with fed futures pricing a rate hike at 87%. The Fed has hinted that it could raise rates up to three times in 2018, and this upward movement in rates will likely propel the US dollar upwards. The US labor market remains at full capacity and various sectors in the economy are reporting a lack of workers. Still, this has not translated into stronger wage growth, despite predictions from Janet Yellen and other Fed policymakers that a lack of workers is bound to push up wages.

Crude oil is back to monitor resistance given at 59.05 (24/12/2017 high). Support is given at a distance at 54.81 (14/11/2017 low). Expected to bounce back lower.

In the long-term, crude oil has recovered after its sharp decline last year. However, we consider that further weakness are very likely. For the time being the pair lies in an upside momentum. Strong support lies at 35.24 (05/04/2016) while resistance can now be found at 55.24 (03/01/2017 high).

Silver has been bouncing on hourly support at 15.61 (14/07/2017 low). Hourly resistance is given at 17.46 (13/10/2017 high). Expected to keep pushing lower.

In the long-term, the trend is rater negative. Further downsides are very likely. Resistance is located at 25.11 (28/08/2013 high). Strong support can be found at 11.75 (20/04/2009).

Gold is now edging lower after strong collapse. The technical structure confirms a further consolidation phase. Support given at 1251 (08/08/2017 high) has been broken. Resistance is located at 1288 (20/10/2017).

In the long-term, the technical structure suggests that there is a growing upside momentum. A break of 1392 (17/03/2014) is necessary ton confirm it, A major support can be found at 1045 (05/02/2010 low).

Bitcoin's bullish momentum is far fom over. The technical structure has shown a tremendous positive short-term momentum. Hourly support is located below 14k (08/12/2017 low). Strong support stands very far at 2975 (22/08/2017 low). In the short-term, the digital currency should continue rising at levels unseen so far.

In the long-term, the digital currency has had an exponential growth. There are decent likelihood that the asset will reach $40'000 in 2018.

EUR/CHF continues to push towards resistance area above 1.17 and support given at 1.1610 (27/10/2017 low). Expected to show continued increase.

In the longer term, the technical structure has reversed. Strong resistance is given at 1.20 (level before the unpeg). Yet, the ECB's QE programme is likely to cause persistent selling pressures on the euro, which should weigh on EUR/CHF. Supports can be found at 1.0184 (28/01/2015 low) and 1.0082 (27/01/2015 low).

EUR/GBP is trading mixed. The pair has failed to hold below broken support at 0.8791 (07/11/2017 low). Resistance is located at 0.8943 (27/11/2017 high). Expected to show further sideways trading.

In the long-term, the pair has largely recovered from recent lows in 2015. The technical structure suggests a growing upside momentum. The pair is trading above from its 200 DMA. Strong resistance can be found at 0.9500 (psychological level).

AUD/USD's downside pressures continue to increase despite short-term bounce. Hourly resistance is given at a distance at 0.7897 (13/10/2017 high). Key support at 0.7535 (22/06/2017 low) has been broken. Expected to go even lower.

In the long-term, the trend is turning positive. Key supports stands at 0.6009 (31/10/2008 low) . A break of the key resistance at 0.8164 (14/05/2015 high) is needed to invalidate our long-term bearish view.

USD/CAD has bounced back after testing hourly support lies at 1.2667 (10/11/2017 low). Hourly resistance stands at 1.2917 ( 27/10/2017 high). Expected to show further consolidation around 1.2900.

In the longer term, the pair has broken longterm support that can be found at 1.2461 (16/03/2015 low). Strong resistance is given at 1.4690 (22/01/2016 high). The pair is likely to head further lower.