The EUR/USD pair performed a reversal in favor of the US currency on Tuesday and began the process of falling towards the corrective level of 1.1250. However, in general, the pair continues to trade inside the side corridor, which continues to characterize the mood of traders as "neutral". Trading volumes are now quite low, which is seen by the corresponding indicator. But I did not expect anything else, after all, the New Year holidays have begun, and the pair has been trading in the side corridor for about a month without them. Yesterday nothing was interesting in terms of the information background. The activity of traders also remained almost zero. And today the situation is unlikely to change. I can only pay attention to the data on diseases with coronavirus and its latest strain omicron around the world. In short, the number of diseases is growing. It is growing in the USA, in the EU countries, in the UK, and many other places.
Unfortunately, so far it is not possible to solve the problem of the new strain. In the near future, many countries of the world may face serious problems in the field of healthcare, because, despite the low percentage of complications with omicron, the number of patients becomes dangerously large, and hospitals are not rubber. Thus, as early as January, quarantine restrictions may begin to tighten around the world. Omicron is already likely to cause serious damage to the global economy and the economies of individual countries. It can already be assumed that too many diseases will affect the production and provision of services since in many companies and enterprises too many employees have gone into self-isolation. And this is all a loss of money, loss of customers, a drop in business activity, a decrease in the volume of work and production, a decrease in revenue. Thus, the fourth and first quarters may be difficult for the global economy. The only question is, will there be a slowdown in GDP or a fall?
On the 4-hour chart, the pair's quotes moved away from the upper boundary of the descending (almost sideways) corridor. Thus, the fall of quotes began on this chart. It may continue in the direction of the corrective level of 161.8% (1.1148). Emerging divergences are not observed in any indicator today. Despite the slight drop, it is still too early to talk about the completion of the sideways. Bull traders could not close over the corridor, now it's the bears' turn.
News calendar for the USA and the European Union:
On December 29, the calendars of economic events in the European Union and the United States are again empty. Thus, the information background today again will not have any effect on the mood of traders.
EUR/USD forecast and recommendations to traders:
I do not recommend opening any sales or purchases at this time. The fall in the quotes of the European currency began, but there was no signal to sell. The pair failed to rebound from the 1.1357 level on the hourly chart. Thus, now we can count on a rebound from the level of 1.1250 or the lower border of the side corridor. In this case, I recommend considering purchases with a target of 1.1357.
