Forex Forecast: 21 – 25/12/2020
EURUSD Rates Week in Review
Last week, our technical indicators suggested to go long at or below 1.2124, and short it at or above 1.2550, setting a stop loss at 1.26. Throughout this week, the EURUSD price range was between 1.2270 and 1.2115. So this past Monday, we could bought the currency pair at 1.2116 on a intraday trading, selling it at 1.2176, realizing 0.5% ROI. Tuesday, we could have bought it at 1.2122, selling it on a intraday trading at 1.2169, for an extra 0.39% gain.
The EURUSD pair trades near a fresh 2020 high of 1.2258 amid the broad dollar’s weakness. The American currency is being pressured by the persistent optimism related to a US stimulus package and a post-Brexit trade deal. The greenback came under additional pressure after the US Federal Reserve left its monetary policy unchanged and reiterated its long-term dovish stance.
Mixed US data keeps the pair running, as the US has just published encouraging housing data but tepid employment-related figures. Initial Jobless Claims for the week ended December 11 jumped to 885K, worse than anticipated. The December Philadelphia Fed Manufacturing Survey contracted to 11.1 from 26.3. On a positive note, Housing starts were up in November by 1.2%, while Building Permits increased by 6.2%.
EURUSD is trading closer to 1.2250, the highest since 2018. Hopes for Brexit and US stimulus deals back the gains, while the Fed remains committed to supporting the economy. US jobless claims are on the docket.
The EURUSD pair is trading around 1.2250, poised to extend its advance. The above 4-hour chart shows that technical indicators maintain their positive momentum near overbought readings as the price advances beyond all of its moving averages.
The pair has an immediate resistance level at 1.2260, with a break above it anticipating additional gains ahead, despite the overbought conditions.
Support levels are at 1.2220, 1.2170, and 1.2120. Resistance levels are at 1.2260, 1.2300, and 1.2345.
For next week, as illustrated in the following EURUSD chart, our technical analysis indicators suggest to go long on the EURUSD, buying it at or below 1.2270, setting a stop loss at 1.21. The support pricing line is at 1.2269 and resistance line at 1.2550.
As of 6:50 PM (GMT), the EURUSD was trading at 1.22620.
EUR to USD forecast for tomorrow: Euro to Dollar forecast on Friday, December, 18: exchange rate 1.2243 Dollars, maximum 1.2427, minimum 1.2059. EUR to USD forecast on Monday, December, 21: exchange rate 1.2251 Dollars, maximum 1.2435, minimum 1.2067. Euro to Dollar forecast on Tuesday, December, 22: exchange rate 1.2282 Dollars, maximum 1.2466, minimum 1.2098. EUR to USD forecast on Wednesday, December, 23: exchange rate 1.2254 Dollars, maximum 1.2438, minimum 1.2070.
In 1 week, Euro to Dollar forecast on Thursday, December, 24: exchange rate 1.2315 Dollars, maximum 1.2500, minimum 1.2130. EUR to USD forecast on Friday, December, 25: exchange rate 1.2293 Dollars, maximum 1.2477, minimum 1.2109. Euro to Dollar forecast on Monday, December, 28: exchange rate 1.2287 Dollars, maximum 1.2471, minimum 1.2103. EUR to USD forecast on Tuesday, December, 29: exchange rate 1.2274 Dollars, maximum 1.2458, minimum 1.2090. Euro to Dollar forecast on Wednesday, December, 30: exchange rate 1.2250 Dollars, maximum 1.2434, minimum 1.2066.
Disclosures: The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any interests in the EUR/USD or any other securities. This overview may include or be based in part on projections, valuations, estimates and other financial data supplied by third parties, which has not been verified by Pedro Ferreira. Any information regarding projected or estimated investment returns are estimates only and should not be considered indicative of the actual results that may be realized or predictive of the performance of the EUR/USD or any underlying security. Further, Pedro Ferreira is not long or short in the currency pair. Past investment results of any underlying managers should not be viewed as indicative of future performance of the EUR/USD.