empty
 
 
sp
Soporte
Apertura instantánea de la cuenta
Plataforma comercial
Depositar/Retirar

27.12.202411:51 Forex Analysis & Reviews: EUR/USD: December 27th. The Euro Hopes for a New Year Miracle

On Thursday, the EUR/USD pair returned to the 1.0420 level, and today it has consolidated above it. Despite the very low trading activity, the pair is not completely stagnant. However, even with a close above 1.0420, I would not anticipate a rise to the 1.0532 level in the coming days, as trader activity remains very subdued leading up to the New Year.

Exchange Rates 27.12.2024 analysis

The wave structure is straightforward. The last completed upward wave barely surpassed the previous wave's peak, while the most recent downward wave easily broke the previous low. This indicates that the "bullish" trend has concluded, as expected, with minimal strength. The next move is likely a decline in the euro as part of a new trend.

The absence of significant events on Thursday explains the lack of activity from both bulls and bears. The market has shifted into holiday mode ahead of Christmas and New Year's, which means movements may remain weak or entirely absent until the year's end. At some point, bulls or bears might attempt to drive the pair in their favor, taking advantage of the opposing side's inactivity. However, such fluctuations are unpredictable. For now, traders might still focus on the 1.0320 level, but patience will be required.

Exchange Rates 27.12.2024 analysis

The pair has rebounded twice from the 100.0% Fibonacci retracement level at 1.0603 and from the 1.0436 level. The downward movement could continue toward the 161.8% Fibonacci level at 1.0225. A consolidation above 1.0436 might lead to further growth toward the upper boundary of the descending trend channel. Currently, no emerging divergences are noted in any indicators. The trend channel provides no reason to expect strong growth in the euro.

Commitments of Traders (COT) Report

Exchange Rates 27.12.2024 analysis

During the last reporting week, speculators reduced 4,704 long positions and 14,382 short positions.Sentiment among "Non-commercial" traders remains bearish and is intensifying, suggesting further declines in the pair. Total long positions stand at 152,000, while short positions amount to 218,000.

For fourteen consecutive weeks, major players have been reducing their euro positions. This reinforces the bearish trend. Occasionally, bulls dominate for brief periods, but these are exceptions. The primary driver for the dollar's decline—expectations of Federal Reserve monetary policy easing—has been fully priced in. Unless new factors emerge, the dollar's growth remains the more likely scenario. Technical analysis also supports the continuation of a long-term bearish trend. Thus, I expect the EUR/USD pair to experience a prolonged decline.

News Calendar for the U.S. and the Eurozone

December 27 features only one minor event on the economic calendar. Its impact on market sentiment is expected to be negligible.

Forecast and Trading Recommendations for EUR/USD

  • Short positions: These were viable following a rebound from the 1.0603 level on the 4-hour chart, targeting 1.0420 and 1.0320. The first target has been achieved, and the second is nearly reached. Additional selling opportunities may arise from rebounds at 1.0620 on the 4-hour chart.
  • Long positions: I do not recommend considering buying opportunities at this time.

Fibonacci Levels

  • Hourly chart: 1.1003–1.1214.
  • 4-hour chart: 1.0603–1.1214.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Samir Klishi,
Analytical expert of InstaSpot
© 2007-2024
Benefíciese de las recomendaciones de los analistas ahora mismo
Recargue su cuenta de operaciones
Abra una cuenta de operaciones

¡Los informes analíticos de InstaSpot lo mantendrá bien informado de las tendencias del mercado! Al ser un cliente de InstaSpot, se le proporciona una gran cantidad de servicios gratuitos para una operación eficiente.

¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.