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EURUSD: Crucial Week

ByAndrey Goilov
Published 12/12/2022, 14:26
EUR/USD
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The currency major begins the main week of December with a minor decline by 1.0520.
 
All the key events of the week are focused on the days to come. On Tuesday, the US will issue the November CPI. Inflation is supposed to have dropped to 7.3% y/y from 7.7% previously. If so, this will create increased volatility before the Federal Reserve System announces the results of the meeting on Wednesday.
 
If inflation is indeed retracting, the Fed my go by the market expectations are raise the interest rate by 50 base points at once. However, if inflation statistics give some signals to worry about, the Fed will act as it is used to, increasing the crediting price by 75 base points like before.
 
Anticipating these events, the market will be in a standby mode.
 
On H4, the pair is forming a wide consolidation range around 1.0510. The correction may continue to 1.0430. After it is over, one more structure of growth may develop to 1.0660. Technically, this scenario is confirmed by the MACD. Its signal line is headed right down, which means continuation of the correctional wave.
 
eurusd forecast
 
On H1, the pair completed an impulse of decline to 1.0510 and a correction to 1.0557. Today the market is forming a structure of a declining impulse to 1.0430. Technically, the scenario is confirmed by the Stochastic oscillator. Its signal line is above 50, preparing to develop a new link of decline to 20.
 
eurusd forecast
 
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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