The surge ended near the 1.0740 level, before a decline started. The follow up decline found support in the 100-hour simple moving average near 1.0600.
Note that the article covers the period until the start of 2023. In the meantime, we would like to ask that feedback on the content would be provided via [email protected] email.
Economic Calendar Analysis
The mid-December week will end with the publication of Markit Services and Manufacturing sector Purchasing Managers Index survey data. Note that most impact occurs due to the French and German data at 08:15 and 08:30 GMT. The European data is followed by US data at 14:45 GMT.
On December 23, look out for the US Core PCE Price Index at 13:30 GMT. This indicator is used by the US Federal Reserve as the main measure of inflation. Deviations from the forecast are bound to cause adjustments in the US Dollar's value.
During the last week of the year, there are no notable scheduled events that might impact the FX market.
EUR/USD hourly chart
In regards to the future, the rate is expected to respect the 1.0600 mark and the moving averages, which support it. Higher above, note that various round price levels could act as resistance until the rate reaches 1.0800.On the other hand, a decline might look for support near 1.0500.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the 1.0600 had acted as resistance since December 5. During the CPI release on 14.12.2022, the level was broken. Most recently, the level was observed to be acting as support.Next target for the pair could be the 1.0790/1.0810 zone.
Daily chart
Read More: Technical Analysis
Traders remain short
Before the US CPI, the Fed and ECB rate hikes, on the Swiss Foreign Exchange, trader open positions were short, as 59% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 55% to sell the Euro against the USD.
After the notable events, the sentiment was 55% short and pending orders were 56% to sell.