Eurodollar Declines, Battle Continues Around USD 1.10【December 21, 2023】
Fundamental Analysis
UK CPI Falls Short of Market Expectations, Pound Dollar Declines
US Economic Indicators Exceed Market Expectations, Stock Prices Fall due to High-Price Alert
Expectation of Interest Rate Cuts in 2024 as CPIs Drop Globally
EURUSD Technical Analysis
Analysis of the Eurodollar’s daily chart reveals an inability to breach the pivotal price of USD 1.10, currently forming a triangle pattern. The 240-day moving average remains flat, and market sentiment analysis shows a strong selling pressure at 71%.With the Christmas holiday approaching, the market is thinly traded, making it challenging to break the pivotal price of USD 1.10. Should it surpass USD 1.10, the next targets could be USD 1.107 and USD 1.1290. The direction of the triangle’s breakout is a point of focus.
Day Trading Strategy (1-Hour Chart)
Analysis of the Eurodollar’s 1-hour chart shows a triangle pattern forming with lower highs and higher lows, narrowing the range. The future direction is unclear at this stage, but particularly the movement of the US Dollar could significantly impact the Eurodollar market.Maintain a bullish view as long as it stays above USD 1.088. As a trading strategy, consider a buy entry around USD 1.0915, with a stop loss at USD 1.088, and target exit prices at USD 1.10 and USD 1.103.
Support and Resistance Lines
Upcoming resistance lines to consider:
USD 1.10 – a round number
Market Sentiment
EURUSD Sell: 71%, Buy: 29%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)US GDP22:30Canadian Retail Sales22:30
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
