- Euro unchanged against the dollar, in the previous 2022.
- EUR / USD on its way to close the year negative, after getting support at 1.1200.
- Dominant trend remains bearish for the pair.
The EUR / USD is trading sideways on the last day of 2021, around 1.1320. It has moved so far this day in a range of 30 pips, always held above 1.1300 and unable to assert itself above 1.1330. Low volume and limited travel, for now, favor the continuation of the pair’s “consolidation mode”.
With no news for these hours and with an empty economic calendar ahead, the focus is on the bond market and what stocks are doing, although the sights are already on 2022.
Bearish and losing, although in consolidation mode
The euro is validating losses for 2021, yielding what it had gained in 2020. The most significant rise occurred in the second half of the year, after losing 1.16, given the change in the expectations of the monetary policy of the Federal Reserve and the differential with what is expected from the European Central Bank. This could continue in the first months of 2022, although it could already be discounted in the price.
The current range that has held since the end of November, between 1.1220 and 1.1360, is a consolidation after the steep decline. The direction of the departure of the range is not clear. This week the euro tested levels above the upper limit, but quickly returned below. The week chart and the day chart are bearish. By 1.1455 / 75 a bearish line is passing that if broken could change the outlook.
EUR / USD day chart
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