By Vladislav Antonov, Alpari
Yesterday’s Trading:
Tuesday’s trading saw the euro/dollar sticking to my forecast up to the American session. By the end of the day the euro had weakened against the dollar by 50 points to 1.0919. The euro bulls couldn’t manage to strengthen above 1.10. The price slid from the daily trend line. The euro fell following the pound when the euro/pound cross switched its path southbound.
Without any news to drive the price, the euro/dollar will keep trading in a sideways with an average price of 1.0940 that it has had for the past 5 trading days.
The US consumer confidence index for December was 96.5 (forecasted 92.5, previous: reassessed from 90.4 to 92.6). This is an excellent figure, but the market knew it was coming.
Main news of the day (EET):
Free Reports:
Market Expectations:
I’ve not bothered with a forecast for Wednesday. The market is thin and the calendar is empty. We now need to think outside the box and against the technical side because the big players find it easier to take down stops and make money on the ruptures (stop orders) and to use large orders for opening positions at profitable prices on the bounce (limit orders).
Technical Analysis:
The EUR/USD is trading sideways on the thin market. The spread range is 1.0900 – 1.0980. The bulls couldn’t manage to break the daily trend line yesterday. Due to the bearish candles on the daily time frame, the oscillator stochastic has crossed downwards. This means that you should expect the unexpected for today.
For the bears to take back the initiative, the day needs to close around 1.0860. For the bulls to capture December’s flag, they need to strengthen above 1.10.