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The currency major has tested six-month highs and remains at 1.0610.

By now, investors have got the maximum information from December. The US Fed has increased the interest rate to 4.50% and promised further increases in accordance with inflation. The European Central Bank has lifted the rate to 2.50% as expected but the comments turned out to be even more carnivorous than expected.

The final inflation report in the Eurozone in November demonstrated growth to 10.1% y/y against the forecast 10.0%. Meanwhile, the base CPI remained at 5.0% y/y.

Until Christmas, the markets will continue analyzing the information to become active again after the winter holidays.

On H4, the pair has completed an impulse of decline to 1.0586. Today a consolidation range is expected to form above it. With an escape downwards, a wave of decline to 1.0507 might become possible. The goal is local. Then growth to 1.0585 and a decline to 1.0440 will become possible. Technically, the scenario is confirmed by the MACD: its signal line is headed strictly down, suggesting further development of the wave of decline.

(Click on image to enlarge)

On H1, the pair has formed a structure of decline to 1.0585. A link of correction to 1.0640 is not excluded, followed by falling to 1.0555, from where the wave might continue to 1.0510. The goal is local. Technically, the scenario is confirmed by the Stochastic: its signal line is above 80 and is preparing to develop a new impulse of decline to 20.

(Click on image to enlarge)

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