Trading in the EUR/USD pair ended at Wednesday's closing level (1.1326) on December 23, The key pair declined to 1.1290, but quickly bounced back to 1.1338. Upbeat sentiment was driven by new research showing that patients infected with Omicron have fewer chances of hospitalization.

Furthermore, the single currency and stock indices got a boost after the FDA granted emergency authorization to Merck’s molnupiravir, an Covid-19 antiviral pill. Earlier in the day, the regulator issued a similar authorization for Pfizer’s drug.

Today’s macro agenda (GMT+3)

Europe and US: offline in celebration of the Christmas holiday

Current outlook

By the time of writing, major currencies were almost all trading in negative territory, correcting lower after yesterday’s uptrend. Today, markets in Europe and the United States are closed and market liquidity is low. Sharp price swings are possible on days like this.

Technical analysis

Price action is still locked inside the November 30 range. The sideways trend has lasted for 23 calendar days. Resistance levels are at 1.1360 and 1.1383. If the price falls, sellers will meet resistance at: 1.1295, 1.1270 and 1.1225. US fixed income and equity markets are closed, so buyers have no guidance when making trading decisions. The external news flow is favorable for the euro and other currencies, so fluctuations in the range of 1.1305-1.1355 are possible amid a holiday-thinned market.

Bottom line: on Thursday, the euro closed at Wednesday's closing price. After the decline, EURUSD rebounded to 1.1337. Christmas celebrations begin today in the Eurozone and the US. The external backdrop is favorable for the euro and other currencies, so a swing in the range of 1.1305-1.1355 is possible amid a thin market.