Forex Forecast: 22 – 29 December 2023 for MT4 MT5

Last week, our technical indicators suggested going suggesting going Long at or below 1.091, setting a Stop Loss at 1.076, and going Short at or above 1.09101, setting a Stop Loss at 1.105.

This week, EURUSD price range was 1.1002 high, set today, Thursday, and 1.0891 low set this past Monday. So, on Monday, we could have bought the currency pair at 1.0892, selling it on an intraday trading at 1.0931, for 0.36% profit. Also, on Monday, we could have short it at 1.0931, covering it on an intraday trading at 1.0915, for 0.15% profit. Tuesday, we could have short it at 1.0987, covering it on an intraday trading at 1.0915, for 0.66% profit. Wednesday, we could have short it at 1.0984, covering it on an intraday trading at 1.0930, for 0.49% profit. Thursday, we could have short it at 1.1001, covering it on an intraday trading at 1.0936, for an extra 0.59% ROI.

 Fundamental Overview

The EURUSD pair recovered its bullish poise on Thursday, and nears the weekly high posted on Monday at 1.0987, as the US Dollar resumed its slide ahead of United States first-tier data. Wall Street ended its winning streak, and major indexes closed in the red in the previous session, dragging Asian and European indexes lower.

The USD could not take advantage of the worsening mood as government bond yields extended their slides. In pre-opening trading, the 10-year Treasury note yielded as low as 3.86%, a fresh multi-month low, while the 2-year note offered a minimum of 4.34%, a level that was last seen in June.

Market participants are now waiting for the release of the final estimate of the US Q3 Gross Domestic Product (GDP), expected to confirm an annualized pace of growth of 5.2%. The country will also publish a revision of quarterly Personal Consumption Expenditures Prices and Initial Jobless Claims for the week ending December 15.

 Technical Analysis

The EURUSD rises toward 1.1000 after mixed US data.

The currency pair gained traction and advanced toward 1.1000 in the early American session on Thursday. The US Bureau of Economic Analysis revised Q3 annualized GDP growth lower to 4.9% from 5.2%, causing the US Dollar to come under selling pressure.

The EURUSD pair seems poised to extend gains as it pressures its weekly high. Technical readings in the daily chart support the case for a bullish continuation, as technical indicators aim north above their midlines, reaching fresh December highs.

At the same time, the pair develops above all its moving averages, which anyway remain directionless. Still, the 20 Simple Moving Average (SMA) converges with the 23.6% Fibonacci retracement of the 1.0447/1.1016 rally, providing support at 1.0883.

The near-term picture also skews the risk to the upside. Technical indicators head firmly north within positive levels, while a mildly bullish 20 SMA continues to provide near-term support while developing above the longer ones.

Support levels are at 1.0950, 1.0915, and 1.0880.

Resistance levels are at 1.1015, 1.1050, and 1.1090.

For next week, our technical analysis is suggesting going Long at or below 1.08036, setting a Stop Loss at 1.06, and going Short at or above 1.09, setting a Stop Loss at 1.105.

 

As of 14:57 PM (EST), the EURUSD was trading at 1.09968.

 

EUR to USD forecast for tomorrow Euro to US Dollar forecast on Friday, December 22: exchange rate 1.091 US Dollars, maximum 1.107, minimum 1.075. EUR to USD forecast on Monday, December 25: exchange rate 1.097 US Dollars, maximum 1.113, minimum 1.081. Euro to US Dollar forecast on Tuesday, December 26: exchange rate 1.100 US Dollars, maximum 1.117, minimum 1.084. EUR to USD forecast on Wednesday, December 27: exchange rate 1.090 US Dollars, maximum 1.106, minimum 1.074.

 

In 1 week, Euro to US Dollar forecast on Thursday, December 28: exchange rate 1.102 US Dollars, maximum 1.119, minimum 1.085. EUR to USD forecast on Friday, December 29: exchange rate 1.110 US Dollars, maximum 1.127, minimum 1.093. Euro to US Dollar forecast on Monday, January 1: exchange rate 1.113 US Dollars, maximum 1.130, minimum 1.096. EUR to USD forecast on Tuesday, January 2: exchange rate 1.113 US Dollars, maximum 1.130, minimum 1.096. Euro to US Dollar forecast on Wednesday, January 3: exchange rate 1.109 US Dollars, maximum 1.126, minimum 1.092.

Until the next article, wishing all of you a very Merry Christmas and wealthy trading!

 

 

 

 

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.

 

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