By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
The major currency pair weakened pretty much at the end of last week. Early in the last full trading week of the year, EURUSD is trading at 1.1084.
Several reports published by the USA last Friday provided great support to the American currency. First of all, it’s the final GDP reading in the third quarter of 2019, which showed the same 2.1% q/q as expected without any surprise. Secondly, numbers on the Personal Income and Spending in November were quite impressive.
The Personal Income showed +0.5% m/m after adding 0.1% m/m in the previous month and against the expected reading of +0.3% m/m. Meanwhile, the Personal Spending was +0.4% m/m, the same as expected, after being +0.3% m/m the month before.
The Revised University of Michigan Consumer Sentiment increased up to 99.3 points in December against the expected reading was 99.2 points. The actual number is much higher than the November one.
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As we can see in the H4 chart, EUR/USD has reached its downside target at 1.1066. After breaking the previous descending wave’s channel, the pair may start a new rising impulse with the first target at 1.1133. Later, the market may start another correction towards 1.1099. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0. The indicator is expected to leave the histogram area and grow to break 0. After that, the instrument may boost its growth on the price chart.
In the H1 chart, EUR/USD is growing with the first target at 1.1097. Later, the market may start another start a new correction towards 1.1080 and then form one more ascending structure with the short-term target at 1.1111. in fact, the price is expected to form a five-wave ascending structure. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving directly upwards above 50 to reach 80.
Disclaimer
Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.