Forex Report on EUR/USD | Robust Technical Analysis | Updated for 12.18.2023

Here is our most recent Forex technical analysis of the EUR/USD currency pair, which offers new insights into its current performance.

Trading Performance Measures

• • Percentage Changes:
    • • Day-Over-Day Change: A slight increase of 0.23% from the previous day.
    • • Week-Over-Week Change: The pair shows a 1.48% increase over the past week.
    • • Month-Over-Month Change: A modest increase of 0.42% occurred over the past month.

• • Correlation and Strength:
    • • Weekly Correlation vs. FGC Dollar Indicator: Maintains a strong negative correlation at -0.9668.
    • • Trading Condition: Remains ‘Neutral’, suggesting a balanced market environment.

• • Key Support/Resistance Levels:
    • • Lower Extreme: 1.0831
    • • Lower Level: 1.0875
    • • Mid-Level: 1.0920
    • • Upper Level: 1.0964
    • • Upper Extreme: 1.1009

• • Predictive Trading Range Probabilities:
    • • Upper Range (21.01% Chance): More Than or Equal to 1.0956
    • • Mid-Range (42.26% Chance): Less Than or Equal to 1.0911
    • • Lower Range (9.53% Chance): Less Than or Equal to 1.0862

Analysis

• • Recent Uptick: The day-over-day increase suggests an increased Euro bias against the US Dollar but needs viewing in the context of broader time frames.

• • Moderate Medium-Term Growth: The week-over-week growth is more significant than the month-over-month, suggesting a recent acceleration in the strength of the Euro against the US Dollar.

• • Persistent Negative Correlation: The strong negative correlation with the FGC Dollar Indicator (our proprietary US Dollar Indicator), continues.

• • Market Condition: The ‘Neutral’ trading condition indicates a lack of extreme market sentiment, either bullish or bearish, which seems logical ahead of the Core PCE Price Index, the preferred inflation measure of the Feds, later this week.

• • Trading Strategy Considerations:
    • • The latest support and resistance levels supply updated benchmarks. The proximity of the mid-level (1.0920) to the current price may function as a pivot point for short-term movements.
    • • The predictive trading range indicates a higher probability (42.26%) of the pair staying below 1.0911, suggesting resistance around this level.
    • • The relatively lower chances of crossing the upper range (21.01%) might influence traders to watch for resistance near 1.0956.

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Tags: #Forex, #TechnicalAnalysis, #CurrencyTrading, #ForexTrading