It’s a Christmas holiday week, so markets can be very volatile and unidirectional due to position adjustments with the end of the year flows. However, markets seem to be trading quite sharply for the start of the week, with risk-off moves as a continuation after the Friday close. The reason can be the CB policy actions and of -course, also the protests against mandatory vaccination that is spreading very fast, globally.
JPY and USD are currently very strong and look like there is more weakness possible vs EUR which has very strong resistance in place as ECB once again repeated that they do not see higher rates in 2022. Technically we see pair in bearish mode, with EURUSD showing a triangle pattern, with subwave E still missing. Nice technical resistance is at 1.1280 triangle pivot and then at the upper side of a range; at 1.1320-1.1350 area. Be aware of a breakdown.
EUR/USD 4h Elliott Wave analysis
