FED: Daly: Incoming Data Looks Promising, Policy In A Good Place

• The Wall Street Journal have published an article indicating that the White House consider China's new demand regarding a Panama Ports deal as unacceptable.
• "President Trump's push to loosen China's influence in the Panama Canal has hit a wall now that Beijing is demanding that China's largest shipping company get a controlling stake in a deal to sell dozens of ports to a BlackRock-led group."
• "The deal is now at an intractable impasse, people involved in the talks say. A senior Chinese official said that Beijing aims to make control of the ports a negotiating point in the U.S. and China's broader talks over trade and tariffs." (Wall Street Journal)

• RES 4: 1.1919 - High Sep 17 and a key M/T resistance   
• RES 3: 1.1848 High Sep 18 
• RES 2: 1.1813 76.4% retracement of the Sep 17 - Nov 5 bear leg
• RES 1: 1.1804 High Dec 16
• PRICE: 1.1769 @ 16:18 GMT Dec 16
• SUP 1: 1.1649 20-day EMA 
• SUP 2: 1.1591 Low Dec 2 
• SUP 3: 1.1556 Low Nov 26
• SUP 4: 1.1491 Low Nov 21 

A bull cycle in EURUSD remains intact and Monday’s gains reinforce this theme. The recent breach of key short-term resistance at 1.1656, the Nov 13 high and a bull trigger, highlighted a stronger reversal. Sights are on 1.1813 next, a Fibonacci retracement. Initial support to watch is 1.1649, the 20-day EMA and a pivot level. A clear breach of the EMA would be bearish and signal a possible reversal.

• US Data/Speaker Calendar (prior, estimate). All times ET
• 12/17 0700 MBA Mortgage Applications (4.8%, --)
• 12/17 0815 Fed Gov Waller economic outlook (no text, Q&A)
• 12/17 0830 Chicago Fed CARTS Retail Indicator
• 12/17 0900 Manheim Used Vehicle Prices
• 12/17 0905 NY Fed Williams opening remarks FX conf, livestreamed
• 12/17 1130 US Tsy $69B 17W bill auction
• 12/17 1230 Atlanta Fed Bostic moderated discussion (no text)
• 12/17 1300 US Tsy $13B 20Y Bond re-open (912810UQ9)
• Source: Bloomberg Finance L.P. / MNI