Currency market review December 30, 2019

What do we see in the foreign exchange market?

The New Year’s mood of the dollar 🇺🇸 is very bad. Monday's trading is below the key support area, there are no drivers for growth.

At the same time, the general global trend for futures on the dollar index still remains upward. It is possible that the current decline is carried out against the background of fixing profits of large investors, as well as against the background of "filling in" the US stock market with money during the Christmas rally.

The futures of the single European 🇪🇺 currency index is trading mysteriously enough on the eve of the New Year. The downtrend in the long term still remains downtrend, but at the same time the past week strengthened the euro above an important level of resistance.

As for the euro, paired with the US dollar, it looks good for a short position in the short term, in the medium term, the market structure has changed a little and at the moment the correction does not look typical of the usual trend.

In addition, we all remember the New Year of 2017, when for no fundamental reason, the euro literally shot up, holding bullish domination throughout 2017.

In the long run, growth is expected to reach 1.22000. As part of the New Year week, you can expect any miracle.

In the second half of last week, the British pound 🇬🇧 managed to deploy a short-term downward pullback towards the prevailing short-term trend.

The level that stopped the price was not strong, which indicates that bulls in this market remain the dominant side.

Within the framework of the current week, the most logical outcome of the events is continued growth to the area of ​​highs 1.3360-1.3440. Based on the test model of these levels, it will be possible to draw conclusions regarding the further dynamics of the UK currency.