The EURUSD is expected to remain flat.
This article is originally referred from Orbex Technical Analysis.
The EURUSD has been hovering above the 1.1662 level of support for the most part of the past two months.
Price action has remained fairly subdued and even the ECB’s monetary policy actions that saw the QE being cut by half in October did not impact the currency pair much.
The euro, which was seen trading near $1.20 handle was seen easing back but with not much of a correction.
On Friday, the EURUSD came under pressure following the Catalonia election results.
After the previous government was dissolved, Spanish PM Rajoy called for fresh elections.
The vote which took place last week saw the pro-Independence parties winning by a narrow majority.
This weakened the sentiment in the euro as even Rajoy’s political party was seen losing seats.
What to expect for the year end?
With the markets closing towards the end of the year, the EURUSD is expected to remain flat.
However, the daily chart signals that while price action has been in an uptrend, supported by the rising trend line, we expect to see the strong consolidation eventually resulting in a breakout.
An upside breakout could see the EURUSD rising towards the previous resistance level of 1.2037.
However, in the event of a reversal, the EURUSD could be seen limiting the declines to 1.1662 level of support.
Only a break down below this level will signal further declines in prices.
Original Source: Orbex Technical Analysis