empty
23.12.2022 08:23 AM
EUR/USD. Analysis for December 23. The European currency has gone on vacation.

This image is no longer relevant

The euro/dollar instrument's 4-hour chart still shows a convincing wave marking, and the entire upward section of the trend is getting more complicated. It has already assumed a clear corrective and somewhat prolonged form. The waves a-b-c-d-e have been combined into a complex correction structure, with wave e having a form that is significantly more complex than the other waves. Since the peak of wave e is much higher than the peak of wave C, if the current wave layout is accurate, construction on this structure may be nearly finished or may already be finished. In this scenario, it is anticipated that we will construct at least three waves downward, though the following wave may be impulsive if the previous trend was corrective. So, in any case, I'm getting ready for a significant decrease in the instrument. However, given that the market has made it clear to everyone this year that it would rather wait, it might start as early as next year. The market is prepared to sell when an attempt to surpass the 1.0726 level, which corresponds to 200.0% Fibonacci, fails. Despite what might seem to be everything needed for it, the demand for US currency is still not increasing. The internal wave e's structure is very unclear. Sub-waves in it are difficult to distinguish.

The market mood was unaffected by the US GDP report.

On Thursday, the euro/dollar instrument fell by 10 basis points. Let me remind you that these numbers are quite conditional, so readers should not be misled by them. When flat, the instrument cannot start and end the day at the same price value. Therefore, each day will either see a certain rise in quotes or a certain fall in quotes. The tool keeps moving horizontally, which is a fundamental fact. In other words, the instrument's price has not changed recently. Right now, neither an ascending nor a descending wave is developing. This week's news was essentially nonexistent, but there will still be several reports today that could lift the market's depressing mood. No reports will, however, wake up the market if it has decided to wait until next year.

I can recall the report on the state of the American economy from yesterday, which revealed stronger growth than anticipated in the third quarter. To be more precise, against the market expectation of +2.9%, by 3.2% in quarterly terms. The market mood was still somewhat affected by this report, in my opinion, but as we can see, the instrument kept moving horizontally. As a result, the wave markup cannot currently be modified or expanded upon. I would rather wait for the market to wake up in the current situation rather than make predictions based on coffee grounds. Given the number of significant reports that will be released in America today, it may happen today. especially the "inflation report" on spending on personal consumption. Although I don't believe the market will react strongly to this publication, the euro currency should eventually begin to form a distinct wave.

This image is no longer relevant

Conclusions in general

I conclude from the analysis that the upward trend section's construction has grown more intricate and is almost finished. As a result, I suggest making sales with targets close to the estimated 0.9994 level, or 323.6% Fibonacci. Although there is a chance that the upward portion of the trend will become even more extended and complicated, and the likelihood that this will happen is still high, at least we now have a signal for a decline from which we can start.

The wave marking of the descending trend segment noticeably becomes more intricate and lengthens at the higher wave scale. The a-b-c-d-e structure is most likely represented by the five upward waves we observed. After the construction of this section is complete, work on a downward trend section can start.

Chin Zhao,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

EUR/USD Analysis on May 28, 2025

The wave structure on the 4-hour EUR/USD chart has transformed into a bullish configuration and continues to follow that trajectory. There is little doubt that this transformation was driven solely

Chin Zhao 19:08 2025-05-28 UTC+2

EUR/USD Analysis on May 27, 2025

The wave pattern on the 4-hour chart for EUR/USD has shifted into a bullish structure and continues to hold that form. I believe there's little doubt that this transformation

Chin Zhao 20:47 2025-05-27 UTC+2

GBP/USD Analysis on May 27, 2025

The wave structure for GBP/USD continues to indicate the formation of a bullish impulsive wave pattern. The wave setup is almost identical to that of EUR/USD. Until February

Chin Zhao 20:30 2025-05-27 UTC+2

GBP/USD Analysis on May 26, 2025

The wave structure for GBP/USD continues to indicate the development of a bullish impulse wave pattern. The wave picture closely resembles that of EUR/USD. Until February 28, we observed

Chin Zhao 16:49 2025-05-26 UTC+2

Weekly Forecast Using Simplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, Ethereum, and U.S. Dollar Index on May 26th

GBP/USD Analysis: Since January, the British pound has been trending upward. The current incomplete segment began on April 8. Within this wave, the final segment remains unfinished. The price

Isabel Clark 11:23 2025-05-26 UTC+2

Weekly Forecast Using Simplified Wave Analysis: EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on May 26th

EUR/USD Analysis: Since April, the euro's primary pair has been forming a descending horizontal pennant. From a strong, potentially reversal zone on the daily timeframe in mid-May, the price began

Isabel Clark 11:15 2025-05-26 UTC+2

GBP/USD Analysis on May 22, 2025

For the GBP/USD pair, the wave structure continues to suggest the development of a bullish impulsive trend. The wave pattern is nearly identical to that of EUR/USD. Until February

Chin Zhao 18:12 2025-05-22 UTC+2

EUR/USD Analysis on May 21, 2025

The wave pattern on the 4-hour chart for EUR/USD has transformed into a bullish structure and continues to remain so. I believe no one doubts that this transformation occurred solely

Chin Zhao 18:56 2025-05-21 UTC+2

GBP/USD Analysis on May 21, 2025

wave structure, largely driven by Donald Trump. The wave setup is nearly identical to that of EUR/USD. Until February 28, we observed the formation of a convincing corrective structure that

Chin Zhao 18:51 2025-05-21 UTC+2

GBP/USD Analysis on May 20, 2025

The wave pattern for GBP/USD continues to indicate the formation of a bullish impulsive wave structure, thanks to Donald Trump. The wave picture is almost identical to that

Chin Zhao 19:47 2025-05-20 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.