The EUR/USD pair did not perform a single reversal on Monday, showed neither growth nor decline. All day long, traders sluggishly dragged the pair along the corrective level of 161.8% (1.1357). In general, the quotes on the hourly chart continue to move inside the side corridor, which characterizes the current mood of traders as "neutral". Based on this, neither buying nor selling a pair now makes much sense. What can traders expect if the pair itself is practically not moving from its place? There is practically no information background this week. Traders have just celebrated Christmas according to the Catholic calendar, and now they are preparing for the celebration of the New Year. All the news that is being received now concerns only the omicron strain and its possible consequences for each economy. Let me remind you that this strain is considered more contagious, but less dangerous for humans. It is already causing some difficulties in some areas of the economy.
In particular, it is reported about the cancellation of a large number of flights in Europe and America because many pilots were forced to go to self-isolation after they became infected with omicron. Thus, they practically do not die from omicron, but they get sick more often. And if a person is sick, then he can't work. And if there are a lot of such people, then whole enterprises can stop. Of course, you can always go to remote work and, being in self-isolation, continue to work. However, this is not technically possible in every profession. For example, piloting an airplane remotely will not work. So it turns out that omicron can be much less dangerous than delta, but it can have much more serious consequences for the economy than delta. Euro/dollar traders are not panicking about this yet, but omicron may cause more active trading at the beginning of next year.
Nothing changes on the 4-hour chart. The pair continues to move along the upper border of the descending (almost sideways) trend corridor, and the last "bearish" divergence did not affect the mood of traders. Thus, as on the hourly chart, there are now no reversals, no falls, no growth. Closing the pair's exchange rate over the descending corridor will work in favor of the EU currency and some growth in the direction of the levels of 1.1404 and 1.1606.
News calendar for the USA and the European Union:
On December 28, the calendars of economic events in the European Union and the United States are still empty. There are no important events. Thus, there will be no information background today.
EUR/USD forecast and recommendations to traders:
I do not recommend opening any sales or purchases at this time. It will be possible to buy euros after closing quotes above the Fibo level of 161.8% (1.1357) on the hourly chart with a target of 1.1450. It will be possible to sell on the rebound of quotations from the level of 161.8% (1.1357) with a target of 1.1250. However, to begin with, it is necessary that the pair at least get to this level, which is quite difficult in the conditions of a lack of information background and a semi-festive atmosphere on the market.
