Forex Analysis & Reviews: Forecast for EUR/USD on December 11, 2023

EUR/USD
Friday's U.S. labor data turned out better than expected. The result was reflected in a decrease in the unemployment rate from 3.9% to 3.7%. The balance indicator line stopped the initial downward movement in response to the news. This was evidently influenced by the risk appetite, as the S&P 500 stock index grew by 0.41%. It is very close to continuing its growth in the medium-term, and to achieve this, the quote needs to surpass the year's high of 4612 (July 27), paving the way for the pair to reach the record target of 4816 (January 2022).

From this perspective, the euro's growth is limited to the time when the S&P 500 continues to rise. Synchronization with this timeframe gives the first serious target level of 1.1076 – the upper band of the descending price hyperchannel, coinciding with the peak on April 14 (December 21-22).

On the 4-hour chart, a double convergence has formed, which could provide the initial momentum in order for the price to rise further so it can consolidate above 1.0825. This would mean settling above the nearest embedded line of the price channel, marked on the daily chart. Subsequent consolidation above the MACD line (1.0850) would mean overcoming the Fibonacci ray on the daily chart and pave the way for the pair to reach the target level of 1.0905. Considering the upcoming Federal Reserve meeting, the euro's growth could be quite strong.

Analysis are provided by InstaForex

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