23.12.2019: Euro and pound halt downward movement. Outlook for EUR/USD and GBP/USD

23.12.2019: Euro and pound halt downward movement. Outlook for EUR/USD and GBP/USD


Our Friday forecast suggesting a decline of
the euro and pound was partially true. In today’s video review on InstaForex TV
channel we will tell you what went wrong and how quotes will change. We have correctly foreseen the trend of the
euro/dollar pair. It fell below the support level of 1.1090
but failed to hit the target of 1.1040. Bears ran out of steam on Friday. Traders remain cautious with the US dollar
amid a conflict between Donald Trump and the Democratic party. Nevertheless, short deals can be opened again
soon with the targets of 1.1060 and 1.1040. Today’s data from Germany mitigated traders’
fears. In November, Germany’s import prices rose
by 0.5% signaling acceleration of the inflation growth rate. The indicator reached the 6-month high, whereas,
on a yearly basis, it fell by 2.1% compared to a decline by 3.5% in the previous period. The forecast for the pound/dollar is still
the same. The pair is moving downwards. However, it has not hit yet the foreseen target
of 1.2950. Economists are monitoring the situation and
there are no signs of a reverse. Traders are likely to open long positions
on the pair if it breaks the 1.2950 level and drops even lower. Then, the pair may correct upwards to the
level of 1.3080. Judging by the gold prices’ dynamics, traders
are still unwilling to buy risky assets. Despite a flow of news that confirms the likelihood
of a settlement of the trade conflict with the US, traders prefer safe-haven assets. Besides, concerns over a possible US economic
recession boosted the gold prices. The precious metal began the last week of
the year by a rise and now, it is trading near the level of $1,485 per troy ounce. That’s all for now. We wish you profitable deals! See you in several hours on our InstaForex
TV channel!

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