It is clear from the 21 December EURUSD Fundamental Forecast that the pair extended its overnight corrective slide to extend as DXY re-takes 93.00 as US macro releases remain in focus for investors.
21 December, GKFX – Having failed to sustain the rally above the 1.19 handle, the EUR/USD pair extended its overnight corrective slide into Asia, as investors seek to take profits off the table ahead of the key US macro releases due on the cards later today.
- DXY attempts recovery in Asia.
- UST’s corrects US tax vote-rally.
- A quiet EUR calendar ahead.
21 December EURUSD Fundamental Forecast
The spot is seen flirting with daily lows of 1.1869, as the bulls face exhaustion after the recent upsurge to highest levels since Nov 26th at 1.1902. The broad-based US dollar recovery from three-week lows gains traction in Asia, as traders unwind their USD shorts in a bid to clear out positions ahead of a fresh batch of key US economic data slated for release today.
Moreover, markets remain hopeful that the House Republican leaders would manage to pass a stop-gap bill to avert a partial government shutdown on Saturday, which further provided extra legs to the USD recovery seen so far this session.
In the day ahead, the EUR/USD pair could extend its correction, as yesterday’s downbeat German PPI and Eurozone current account data continue to still weigh on the EUR, keeping a check on further upside. Also, the spot will remain at the mercy of the USD dynamics in absence of fresh catalysts seen from the Euroland today while the Catalan election will remain in focus for a fresh take on the EUR.
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