For Traders

Analytical Reviews

Technical analysis

24.12.202111:54 Forex Analysis & Reviews: EUR/USD analysis and outlook for December 24, 2021

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Everything changes

Hi, dear traders!

Yesterday's trading session ended inconclusively for both bulls and bears. Thursday's rather positive US data releases still failed to give significant support to the US dollar. Initial jobless claims matched the forecasted 205,000. The core PCE price index, used by the Fed to gauge inflationary pressure, grew to 4.7%. Economists expected the index to reach 4.5%. It seems the market's activity weakened in the run-up to Christmas. The Santa Claus rallies observed in the past few years are clearly a thing of the past now. In the meantime, the European tourism sector is struggling - due to the new restrictions, holiday travel is out of the question for many Europeans. The COVID-19 situation is unlikely to improve until late 2022. In the best case scenario, the pandemic could begin to recede in mid-2022.

Daily

Due to Christmas's Eve, there are no events on the economic calendar today. Yesterday, EUR/USD found strong support at 1.1291 and recovered most losses it suffered earlier, despite the efforts of bearish traders. The pair closed at 1.1327 on Thursday. The red Tenkan-Sen line of the Ichimoku cloud gave additional support to EUR/USD. Yesterday's advice for traders to open long positions with low targets after the pair's decline into the 1.1305-1.1295 area turned out to be accurate.

The exchanges are closed in both the EU and the US due to Christmas, meaning there is a thin market at the moment. Today is not the best day for opening any positions. Traders could consider opening short positions if EUR/USD reaches the strong resistance in the 1.1343-1.1360 area. Emerging reversal candlestick patterns would serve as sell signals. It is recommended to set low targets when opening positions.

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.