Analytical Overview Of The Main Currency Pairs - Thursday, Dec. 23

The EUR/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.1285
  • Prev Close: 1.1327
  • % chg. over the last day: +0.37%

The dollar index is declining amid Pfizer's approval of a new COVID-19 drug. Investors are shifting their funds to riskier assets, which causes the stock market to rise and, consequently, the dollar index to fall. In turn, a decline in the dollar index contributes to the strength of the European currency, even despite a sharp increase in the number of COVID-19 cases in the Eurozone.

Trading recommendations

  • Support levels: 1.1323, 1.1293, 1.1230, 1.1168
  • Resistance levels: 1.1360, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD on the hour time frame is still bearish. The MACD indicator has become positive, the pressure of buyers is increasing. It is better to consider sell deals from the priority change level. Buy trades can be considered on the lower time frames from the support level of 1.1293, but only with additional confirmation.

Alternative scenario: if the price breaks out through the 1.1360 resistance level and fixes above, the mid-term uptrend will likely resume.

(Click on image to enlarge)

EUR/USD

News feed for 2021.12.23:

  • – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
  • – US Core Durable Goods Orders (m/m) at 15:30 (GMT+2);
  • – US PCE price index (m/m) at 15:30 (GMT+2);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
  • – US New Home Sales (m/m) at 17:00 (GMT+2);

The GBP/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.3254
  • Prev Close: 1.3349
  • % chg. over the last day: +0.71%

The UK may impose additional restrictions to contain the spread of the Omicron strain. In the past 24 hours, 106,122 new infections have been reported. In the run-up to Christmas, this situation could negatively impact the British pound. It should be noted that investors' expectations are always priced in before the official data is released. The UK GDP increased by 1.1% in Q3; 1.3% growth was expected.

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