Euro Losing Its Weight
Dmitriy Gurkovskiy | Dec 21, 2020 07:25AM ET
So, the USD has moved away from its lows 30-month lows against the euro; at the moment, the American currency continues strengthening. On Monday morning, December 21st, the asset is moving at 1.2119.
Long-expected news was in favor of the USD: US Congress has finally managed to reach a consensus between Republicans and Democrats in approving ad additional stimulus package for the country’s economy in the amount of 900 billion USD, intended for enhanced federal unemployment benefits, aid for small businesses, schools, and child care.
This time, financial aid will be also provided to tenants and lessees who can be evicted due to the lack of money to pay rent.
In the H4 chart, EUR/USD is forming the fifth ascending wave towards 1.2300; it has already reached the short-term upside target at 1.2270, and right now is correcting towards 1.2160. After that, the asset may form one more ascending structure to break 1.2222 and then continue trading upwards to reach 1.2300. From the technical point of view, this scenario is confirmed by MACD Oscillator: after leaving the histogram area, its signal line is falling towards 0, thus confirming the correction on the price chart.
As we can see in the H1 chart, after breaking 1.2217 to the downside and reaching the short-term correctional target at 1.2180, EUR/USD is growing to return and test 1.2217 from below. After that, the instrument may continue the correction towards 1.2160 and then form one more ascending structure with the target at 1.2222n. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is growing from 20. Today, the line is expected to reach 50, rebound from it, and then fall to return to 20.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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