By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On Monday, 13 December, the major currency pair is trading at 1.1300.
Last Friday’s statistics on the US Consumer Price Index were not surprising, although a bit unusual. The indicator skyrocketed to 6.8% y/y in November. On MoM, inflation was 0.8% against the expected reading of 0.7%.
Based on the latest inflation reports, among other things, the US Fed may announce its decision to speed up the closure of its QE programme by at least fifty per cent. In this case, the programme may be щук as early as March 2022 and the Fed may start discussing the rate hike in May.
Investors believe that the regulator may raise the rate by 50 basis points next year.
In the H4 chart, EUR/USD is trading downwards to reach 1.1120 and may later consolidate there. If the price breaks the range to the upside, the market may start a new correction with the target at 1.1363. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0 and may later continue falling towards new lows.
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
As we can see in the H1 chart, EUR/USD is forming another descending structure to break 1.1243 and may later continue falling with the short-term target at 1.1166. After that, the instrument may correct to return to 1.1243 and then resume falling towards 1.1100. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line is moving below 20, thus implying further decline towards new lows.
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- Oil prices remain volatile. The Reserve Bank of Australia signals further rate hikes May 19, 2026
- Gold Recovers Some Losses: What’s Driving the Market? May 19, 2026
- Economic activity in China is slowing. Silver has fallen by more than 8% May 18, 2026
- USD/JPY Rises for Sixth Straight Day: Yen Back on the Cusp of Intervention May 18, 2026
- Optimism surrounding the US-China summit in Beijing supported the markets May 15, 2026
- Gold Falls on US Inflation Concerns as Week Ends in Losses May 15, 2026
- The oil market may remain in a state of severe supply shortage until autumn May 14, 2026
- GBP/USD Under Policy Pressure: What Lies Ahead for the Prime Minister? May 14, 2026
- European stock markets declined amid rising concerns about an energy crisis May 13, 2026
- USD/JPY Continues to Climb Amid External and Domestic Pressures May 13, 2026
