At the beginning of another December week, EURUSD is slowly rising and trading close to 1.1395. investors’ response to the US Federal Reserve decisions helped the instrument to reach 1.1485, the highest level over the previous trading week.
In general. December turned out to be a very volatile month for the major currency pair. Investors had to consider OPEC+ meetings, the FOMC meeting, and the QE program elimination. There was too much fundamental news, forcing a lot of fluctuations in EURUSD and a veritable firestorm of emotions among investors.
This week, the macroeconomic calendar is almost empty. The only active day will be Friday. The USA will report on the Goods Trade Balance and the Wholesale Inventories in November. On the same day, the US Federal Reserve Chairman Jerome Powell is going to speak. There will be hardly anything else to make the currency market move.
On Christmas Eve and Christmas, no activity is expected on the market, that’s why the major currency pair will probably consolidate in the range. There might be some quick movements on a “thin” market with a handful of investors, such things happen from time to time, but it’s very unlikely.
Looking at the H1 chart of EURUSD, one can see the mid-term correction to the upside. The current short-term decline may reach the support level of the mid-term projected channel at 1.1285, but only after the price breaks the low at 1.1355. In the nearest future, the instrument is expected to start a new pullback towards the resistance level at 1.1420.