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23.12.202208:23 Forex Analysis & Reviews: EUR/USD. Analysis for December 23. The European currency has gone on vacation.

Exchange Rates 23.12.2022 analysis

The euro/dollar instrument's 4-hour chart still shows a convincing wave marking, and the entire upward section of the trend is getting more complicated. It has already assumed a clear corrective and somewhat prolonged form. The waves a-b-c-d-e have been combined into a complex correction structure, with wave e having a form that is significantly more complex than the other waves. Since the peak of wave e is much higher than the peak of wave C, if the current wave layout is accurate, construction on this structure may be nearly finished or may already be finished. In this scenario, it is anticipated that we will construct at least three waves downward, though the following wave may be impulsive if the previous trend was corrective. So, in any case, I'm getting ready for a significant decrease in the instrument. However, given that the market has made it clear to everyone this year that it would rather wait, it might start as early as next year. The market is prepared to sell when an attempt to surpass the 1.0726 level, which corresponds to 200.0% Fibonacci, fails. Despite what might seem to be everything needed for it, the demand for US currency is still not increasing. The internal wave e's structure is very unclear. Sub-waves in it are difficult to distinguish.

The market mood was unaffected by the US GDP report.

On Thursday, the euro/dollar instrument fell by 10 basis points. Let me remind you that these numbers are quite conditional, so readers should not be misled by them. When flat, the instrument cannot start and end the day at the same price value. Therefore, each day will either see a certain rise in quotes or a certain fall in quotes. The tool keeps moving horizontally, which is a fundamental fact. In other words, the instrument's price has not changed recently. Right now, neither an ascending nor a descending wave is developing. This week's news was essentially nonexistent, but there will still be several reports today that could lift the market's depressing mood. No reports will, however, wake up the market if it has decided to wait until next year.

I can recall the report on the state of the American economy from yesterday, which revealed stronger growth than anticipated in the third quarter. To be more precise, against the market expectation of +2.9%, by 3.2% in quarterly terms. The market mood was still somewhat affected by this report, in my opinion, but as we can see, the instrument kept moving horizontally. As a result, the wave markup cannot currently be modified or expanded upon. I would rather wait for the market to wake up in the current situation rather than make predictions based on coffee grounds. Given the number of significant reports that will be released in America today, it may happen today. especially the "inflation report" on spending on personal consumption. Although I don't believe the market will react strongly to this publication, the euro currency should eventually begin to form a distinct wave.

Exchange Rates 23.12.2022 analysis

Conclusions in general

I conclude from the analysis that the upward trend section's construction has grown more intricate and is almost finished. As a result, I suggest making sales with targets close to the estimated 0.9994 level, or 323.6% Fibonacci. Although there is a chance that the upward portion of the trend will become even more extended and complicated, and the likelihood that this will happen is still high, at least we now have a signal for a decline from which we can start.

The wave marking of the descending trend segment noticeably becomes more intricate and lengthens at the higher wave scale. The a-b-c-d-e structure is most likely represented by the five upward waves we observed. After the construction of this section is complete, work on a downward trend section can start.

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Chin Zhao,
Analytical expert of InstaSpot
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