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flag ★ Forecast for EUR/USD on December 1, 2021

Forex Analysis:::2021-12-01T13:29:04

Forecast for EUR/USD on December 1, 2021

Forecast for EUR/USD on December 1, 2021

EUR/USD is consolidating above 1.1300, as the US dollar looks to stabilize after Jerome Powell's speech and news about the Omicron variant affected the bond market volatility. The eurozone inflation hit a record top, ECB policymakers cited growth concerns to defend easy money policies. US ADP, ISM PMI and Powell's speech will be disclosed later today.

On the four-hour chart, the Relative Strength Index (RSI) returned to 60 after edging lower to 50, suggesting that sellers remain on the sidelines for the time being.

However, strong resistance seems to have formed around 1.1360, where the Fibonacci 38.2% retracement of November's downtrend meets the 100-period SMA. In case buyers manage to flip that level into support, additional gains toward 1.1400 (Fibonacci 50% retracement) and 1.1450 (Fibonacci 61.8% retracement) could be witnessed.

On the other hand, 1.1300/1.1290 (psychological level, Fibonacci 23.6% retracement, 20-period SMA) aligns as initial support before 1.1260 (50-period SMA) and 1.1235 (Tuesday low).

Analyst InstaForex
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