Forex Analysis & Reviews: 21.12.2023 - Forecast for EUR/USD on...

InstaForex - Official partner of Dragon Racing

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

21.12.2023 01:12 PM

Forecast for EUR/USD on December 21, 2021

The EUR/USD pair reversed in favor of the U.S. dollar on Wednesday, consolidating below the corrective level of 61.8% (1.0960). Thus, the downward process may continue toward the next Fibonacci level of 50.0% (1.0862). I support the scenario of further decline in the pair, as, judging by the waves, the trend seems to be shifting towards the "bearish" side. However, a firm hold above the level of 1.0960 will indicate that bulls are not ready to retreat fully and may attempt to resume growth towards the level of 1.1035.

The wave situation is becoming clearer and more favorable. The last downward wave turned out to be relatively weak (compared to the previous upward wave), and the current upward wave has every chance of not surpassing the peak of the previous wave (from December 14). If this scenario unfolds, we will have the first sign of completing the "bullish" trend. In this case, a decline towards the level of 1.0862 should begin, which may only be the start of a prolonged "bearish" trend. This is the scenario I am currently counting on.

On Wednesday, there were a few interesting events in the European Union and the United States. The only U.S. report on the number of new home sales showed a value slightly higher than traders expected for November. However, this report is unimportant, and traders' reactions were practically nonexistent. Thus, this week, I can highlight only two events. The first one is the inflation report in the European Union, which showed a final decrease in November to 2.4% y/y, and the U.S. GDP report for the third quarter, which will be released today in the second half of the day.

As with European inflation, the report on economic growth in the U.S. may not cause a strong reaction. This is not the first estimate of the indicator for the third quarter, and traders are prepared to see +5.2% q/q. If today's report shows a higher or lower value, then bulls or bears will receive minor support. But overall, this week's information background is quite weak, with important reports coming only from the United Kingdom. By the end of the week, trader activity may be relatively low, but I still expect a decline in the pair toward the level of 1.0862. This target already looks quite attractive.

On the 4-hour chart, the pair rose to the corrective level of 50.0% (1.0957). A firm consolidation of the pair's rate above this level allows counting on further growth towards the next Fibonacci level of 38.2% at 1.1032. Reconsolidation below 1.0957 will again favor the U.S. currency and a fall to the lower line of the ascending trend corridor, which still characterizes traders' sentiment as "bullish." I expect a significant decline in the euro only after consolidating below the ascending trend corridor. Still, even under the current circumstances, a decline towards the lower line of the corridor looks promising. There are no apparent divergences with any indicator today.

Forecast for EUR/USD and trader advice:

What advice can be given to traders today? The rise of the European currency is unlikely. The continuation of the "bullish" trend is also unlikely. The information background could be stronger; the economic events calendar for the EU and the U.S. is practically empty, and traders will find it difficult to find new reasons for buying. Thus, a resumption of the decline towards the level of 1.0862 is likely. A consolidation below the level of 1.0960 can be considered for selling the pair. I consider purchases today impractical and too risky."

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.