EUR/USD Took A Break
Dmitriy Gurkovskiy | Dec 27, 2021 11:35
On Monday, 27 December, the major currency pair is consolidating around 1.1317. In the next several days, the asset is expected to remain calm: investors are having a good time celebrating Christmas and New Year. Any fluctuations may happen only after 1 January 2022.
The risk attitude on the global market is looking stable and that helps the American currency to remain neutral. The demand for “safe haven” assets is also rather low.
The closest important statistics from the US, the Goods Trade Balance and the Wholesale Inventories for November, will be published only on Wednesday. On Thursday, the European Central Bank is scheduled to release its Monetary Policy Meeting Accounts. Any of these events are highly unlikely to shake the market.
Technical analysis
In the H4 chart, EUR/USD is forming a wide consolidation range around 1.1300. Possibly, today the pair may grow towards 1.1347 and then fall to test 1.1300 from above. Later, the market may start a new growth with the target at 1.1371. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0 and may later continue growing towards new highs.
As we can see in the H1 chart, after returning to 1.1303, EUR/USD has rebounded from this level to the upside; right now, it is still growing with the short-term target at 1.1347. Later, the market may start a new correction towards 1.1300. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line is moving above 50 and may continue its movement to reach 80.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Disclaimer: Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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