It is evident that while decent Americans were celebrating Thanksgiving, global financial markets remained steady. Besides, all investment banks and pension funds control most of the capital circulating in these markets. Moreover, by a strange coincidence, their headquarters are in the United States, mostly in New York. Therefore, when there is another day off in the US, the entire financial world from Japan to Alaska has the same.
Moreover, taking into account this aspect, all statistical departments, ministries and central banks try not to publish any relevant data on such dates. No attention will be focused on this information. Therefore, market stagnation, observed since yesterday, is typical. It will last for the whole day as there are reducing working hours in the US today. Lots of stockbrokers, traders and professional investors have no chance to concentrate on work. Probably for this reason, no significant data is released today. To be more exact, nothing is published at all.
The EURUSD currency pair has slowed down the downward cycle within the support area 1.1160/1180, where the rebound of stagnation occurred. Despite the high level of oversold euro, market participants maintain interest in short positions. This is confirmed by the absence of a full-size correction.
On the daily chart, there is an inertial movement, where the euro weakened by 3.5% over two weeks. On a six-month scale, the weakening amounted to 8.7%.
In the four-hour and daily periods, the RSI indicator is moving between the 30 and 50 lines. It indicates a deep interest in selling positions among market participants.
Expectations and Prospects:
Taking into account the scale of the decline and the lack of a corrective move, it is possible to assume a temporary slowdown of the downward cycle. It may cause a technical rebound or a temporary flat.
The complex indicator analysis has a variable signal in a short-term period due to stagnation. Technical tools in the four-hour and daily periods indicate to sell due to the downward cycle.