03.01.202210:09 Forex Analysis & Reviews: EUR/USD analysis and outlook for January 3, 2022

Hi, dear traders!

The year 2022 has begun. This year, the Federal Reserve and the European Central Bank are set to tighten their monetary policy by winding down QE and raising interest rates. In the Netherlands, a fifth lockdown was enacted. Schools and public places such as restaurants are shut down. Protests against the new restrictions took place in Amsterdam. Dutch police officers also voiced their displeasure - they consider their work requirements to be too high. In France, local authorities decreased the duration of self-isolation to 7 days for vaccinated people and 10 days for non-vaccinated people. The 3 countries with the highest number of daily infections remain the same - the US, Brazil and India, with Russia suddenly rising to fourth place. Many countries assume the peak of the pandemic has been passed and the spread of COVID-19 could be stopped or minimized this year.

Now, let us have a look at the results of the previous month:

Monthly

In December 2021, EUR/USD went upward, forming a bullish candlestick and closing the month at 1.1385. Bearish traders failed to steer the price towards the previous lows at 1.1187. The shape of December's candlestick suggests the market doesn't want the euro to slump, and the pair could rise in January 2022.

Weekly

According to the weekly chart, the pair increased strongly last week, closing slightly above the resistance at 1.1383. EUR/USD has begun 2022 with a dive, as market players await upcoming economic events. The most important event on this week's economic calendar is the US labor market data, due to be released on Friday, January 7. Currently, the main opportunity for traders is opening long positions when EUR/USD retraces downwards into the 1.1340-1.1320 area.

Good luck!