On Friday, the EUR/USD pair continued downward as nervousness on the market persisted.

During the weekend, the Greek election took place and as expected, Syriza party won. The pair declined and again tested to break through. However, the pair lost the momentum and bounced back up.

At 9:00am GMT the German Ifo Business Climate will be released and is expected to show the highest figure since July 2014. If the reading disappoints the pair may test the support third time. The movement is sideways.

 

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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:


1) Greece Votes

The left-wing Syriza party swept to victory in elections on Sunday, fueled by populist anger over years of severe austerity measures in Greece. Syriza has vowed to renegotiate the terms of the country's massive bailouts with the EU and IMF, who have lent Greece €240 billion ($277.8 billion) since 2010.

CMC Markets analyst Michael Hewson said the next few weeks are "likely to be crucial ones where one misstep could well cause Greece to leave the euro."


2) Futures Fall

US stock futures were poised for a soft start to the week. Dow and S&P 500 futures were down by 0.4%. Most major U.S. markets posted losses on Friday, with the Dow Jones industrial average slipping 0.8% and the S&P 500 down by 0.6% -- though the Nasdaq edged up 0.2%.


3) Economics & Earnings

The S&P/Case-Shiller home price index is released at 9:00am ET, and the Conference Board posts its monthly consumer confidence index at 10:00am ET. Microsoft (MSFT, Tech30) will report earnings after the closing bell.


4) International Markets Overview

European markets were mixed in early trading, with France's CAC down 0.1%. Germany's DAX added 0.2% after a survey showed improved business conditions in the largest European economy. Asian markets also diverged, with Shanghai's Composite up 0.9% while Japan's Nikkei index closed down 0.3%.

 

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What is it? It checks the level of a diffusion index based on surveyed businesses, excluding the farming industry.

It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.

When? January 26th at 7:30pm Eastern Time.

Trading Tip: If the actual higher is lower than the forecast, you can expect the AUD to rise.

 

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What is it? The Eurogroup coordinates economic policies of the 17 euro area member states, and their initiatives and decisions can have a widespread effect on the Eurozone's economic health.

When? January 26th all day long.

 

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What is it? It checks the level of a composite index based on surveyed manufacturers, builders, wholesalers, and retailers.

It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.

When? January 26th at 4:00am Eastern Time.

Trading Tip: If the actual higher is lower than the forecast, you can expect the EUR to rise.

 

Ask us about our FREE signals program: 

 

Other top stories:

Countless Already Joined and Made a Profit - What About You?

The Importance of Diversification

How I Made Over $30,000 a Year by Investing in Binary Options

 

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