EUR/USD Forecast 31 Dec 12 3

Good day forex traders and koalas.

The year is about to end and I hope you are having a fantastico time! May everyone harvest more pips in 2013!

In the previous EUR/USD forecast we noted bearish pressure on the currency pair. The continued Euro Zone uncertainty probably created a drag on the euro currency. The approaching US fiscal cliff deadline was also of concern,


Technical Analysis

Looking at the EUR/USD daily chart above we can see that the price action is slow due to the holiday season. The currency pair is holding above 1.32 for now. There is divergence versus the AUD/USD which dipped due to the Australian budget woes.

Fundamental Analysis

With the US fiscal cliff yet to be settled, we are seeing a high amount of risk. A positive development may see the EUR/USD going on a rally while a failure to avert the US fiscal cliff may see risk aversion due to fears of recession. Coupled with a low volume condition due to the holiday season, unexpected spikes may happen. Extreme caution is advised. Do remember that watching from the sidelines is an option.

Trade safely.

VN:F [1.9.22_1171]
Rating: 5.0/5 (1 vote cast)
EUR/USD Forecast 31 Dec 12, 5.0 out of 5 based on 1 rating
  • Elmar Silveira Votri

    Thank you a lot TheGeekKnows!

    Forex Calender is full of bank holiday! Probably is good to wait next week to trade! ๐Ÿ™‚
    I hope everybody is enjoying a rest in the last days of 2012. Forex will be there next year for us to trade! Lets rest and enjoy family!

    • Happy new year ๐Ÿ™‚

      • Elmar Silveira Votri

        Likewise friend! I have a very positive feeling about events to come in 2013 for us.

        In 2012 the website has become for me an impressive and indispensable tool to trade, share and learn! I hope more traders and readers enjoy this too throughout the 2013.