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EUR/USD finishes the week above 1.1300 ahead of Christmas eve

  • The shared currency losses against the greenback but remains above the 1.1300 figure.
  • EUR/USD Price Forecast: A descending triangle in a downtrend opens the door for a challenge of the YTD low at 1.1186.

The EUR/USD is barely down late in the European session, trading at 1.1318 at the time of writing. As US markets as a whole remain closed on Christmas eve, the market sentiment is upbeat. 

On Friday, the greenback benefits from thin liquidity conditions gaining ground against all G8 currencies, though as of late against the GBP, which is down 0.02% though clings to the 1.3400 figure.

By Tuesday, it appeared that a Santa rally was not coming in 2021. However, as news of a study in South Africa reported that people infected with the Omicron variant were 80% less susceptible to needing hospitalization, it improved the market mood. Further in the UK, two studies reported the same results as in South Africa, though the percentage of people was between 50% to 70%. That, alongside the US Food and Drug Administration (FDA) approving Covid-19 treatments by Pfizer and Merck

EUR/USD Price Forecast: Technical outlook

The EUR/USD daily chart depicts the pair has a downward bias, as shown by the daily moving averages (DMAs) residing above the spot price. In the near term, the EUR/USD is in consolidation ahead of 2022. However, as of lately, a descending triangle chart pattern formed that could target the YTD low around 1.1186, though it would face some hurdles on the way down.

The first support would be the 1.1300 figure. The latter's breach would expose the December 15 cycle low at 1.1221, followed by the November 24 YTD low at 1.1186.

 

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