On Tuesday the 24th of December, the euro was slightly down by the end of the day’s trading. The euro slipped to 1.1069 and closed at around 1.1084. Liquidity during the holidays was low, and a thin market often leads to unpredictable results.
In European trading, the euro fell to 1.1069 amid general falls in euro crosses – all major cross currencies traded in the red. The price continued to fall until the American session brought about an upturn in mood. The fall eventually stopped in the zone around the 1.1066 minimum set on December 20. In the futures market, as the euro strengthened, the number of sales (12,901) and purchases (12,538 contracts) were roughly the same.
On Tuesday, investor interest was firmly fixed on gold, which jumped 0.93% up to 1.499. Precious metals gained support after reports that North Korea had successfully developing new weapons. Another growth factor was the news that Beijing criticized the United States for interfering in the problems of Taiwan, Hong Kong and Xinjiang.
Today’s events (GMT+3):
The market opened at the close of trading on Tuesday. At the time of writing, the euro is worth 1.1087. Monday and Tuesday’s expectations did not materialise. The support of 1.1070 was stronger than expected. Although in a thin market one could look under it, since there was a favourable time window for bears.
Bears held onto the 90th degree. The price is at the trend line from 1.1175. The 45th degree is located at 1.1118. Protective assets are trading in the red, major currencies are in the black.
Now we are starting to lean more towards seeing a strengthening of the euro against the dollar by the end of the year. Statistics show that in the last week of December, the euro has strengthened by 80% over 20 years (since 1999). The low density of market players will continue until the new year. Since crosses on the euro are trading in the red, be prepared for a false entry at 1.1070.
The US President has once again confirmed that the deal with China is completely ready (we are talking about the first phase of the trade agreement) and documents are currently being processed.