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flag ★ EUR/USD consolidates ahead of a new rally

Forex Analysis:::2021-12-27T15:14:51

EUR/USD consolidates ahead of a new rally

EUR/USD continues to move sideways as the Dollar Index is trapped within a narrow range. DXY's breakout from its range may force the currency pair to escape from the current range as well.

As you already know, the US banks were closed on Friday in observance of Christmas Day. Fundamentally, the pair remains under some upside pressure after the US reported mixed data on Thursday.

Tomorrow, the US is to release its HPI indicator which is expected to report a 0.9% growth, while the Richmond Manufacturing Index is expected to remain unchanged at 11 points. Besides, the S&P CS Composite-20 HPI will be released. However, none of these indicators are high-impact, so maybe the pair will continue to move sideways.

EUR/USD extended range

EUR/USD consolidates ahead of a new rally

As you already know, EUR/USD is trapped between 1.1235 and 1.1374 levels. It has managed to come back above the downtrend line signaling an upside pressure. Now, it consolidates above the 23.6% retracement level and above the weekly pivot point of 1.1296.

The current accumulation could bring new long opportunities. It could signal that EUR/USD may extend its rebound.

EUR/USD outlook

EUR/USD could activate an upside reversal if it jumps and stabilizes above the 1.1374 static resistance. Testing and retesting the weekly pivot point at 1.1296 and the 1.13 psychological level could help the buyers to go long from around these levels. A minor consolidation above these obstacles, false breakdowns may announce a new upside momentum.

Analyst InstaForex
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