- Since the start of trading in the last week of the year 2022 the exchange rate of EUR/USD settled in a narrow range in a neutral position.
- It recorded resistance at 1.06670 yesterday before settling around the 1.0644 level at the time of writing the analysis.
- In general, the euro / dollar exchange rate remained in a narrow range amid weak trading as investors reacted to the relatively positive American economic data.
- It was trading at 1.0670 this week where it has been for the past few days.
- This price was a few points lower than the highest level it recorded this month at 1.0732.
The currency pair interacted stably after a series of positive American economic data, as the data issued by the Conference Board showed that American consumer confidence rose to the top in December. and rose from 101 in November to 108 in December as economic expectations rose.
Consumer confidence is considered one of the most important economic data because of the role that spending plays in the economy. The consumers are the largest components of the American economy. And as such, highly confident people tend to spend more, thus boosting the economy. Additional data then showed that US GDP grew by 3.3% in the third quarter. The previous two estimates showed that the economy grew by 2.9% in the quarter. This recovery happened after the economy contracted in the previous two consecutive quarters. Before that, data showed that US consumer and producer inflation eased in November. As headline consumer inflation data fell to 7.3% in November after rising 7.7% the previous month. and remained above the Fed's target of 2.0%.
So the stunning numbers from the US mean the Fed has more firepower to deploy. Accordingly, analysts expect him to raise US interest rates by 0.50% in February followed by a smaller increase of 25 basis points in March.
Forecasts for the euro against the dollar EUR/USD today:
According to the performance on today's chart, the exchange rate of the euro currency pair against the dollar EUR/USD is still in a neutral position and the tendency will be downward if it moves towards the support levels 1.0570 and 1.0480 respectively. On the other hand, according to the performance over the same period of time, breaking through the 1.0730 resistance will be important for the strength of the bulls' control over the trend.
According to the performance on the four-hour chart, it seems clear that the price of the EUR/USD currency pair has been in a slow upward trend in the past few months. Recently, it has been suspended near the underside of the ascending channel. The pair moved above the 25-day and 50-day moving averages. It also formed a small descending channel similar to the descending wedge pattern. Therefore, the pair is likely to see an upside breakout in the coming days as buyers target the upper side of the channel at 1.0750. The drop below the lower side of the channel at 1.0573 will invalidate the bullish view.
The currency pair does not expect any important and effective data, but morale will decrease in light of the Christmas holidays and many markets will be closed and investors will abandon the adventure.
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