FX.co ★ Forecast for EUR/USD on December 31. The euro ends the year 1000 points below its beginning

On Thursday, the EUR/USD pair continued the process of falling towards the level of 1.1250 and the lower border of the side corridor after the rebound from the upper border of the corridor and the corrective level of 161.8% (1.1357) was performed. However, in the second half of the day, the fall stopped, and now the pair can even make a return to 1.1357. However, in any case, the New Year's Eve auctions are now continuing, from which one can hardly expect much logic. The information background has been missing for more than a week. Traders are not even trying to leave the side corridor, because there is no reason to do so now. On December 31, we can summarize the results of the outgoing year. Unfortunately, this year was the second "coronavirus" and hardly the last. In the last month of 2021, the main topic around the world was again a pandemic and a new strain of omicron, thanks to which anti-records on infectability are again set daily in many countries of the world. Thus, next year maybe the third year in a row in which humanity is fighting against the virus. Against this background, all other events fade into the background. Really, what happened in America or the EU during this year? It was only at its very beginning that the president changed in the United States. Donald Trump left his post with a scandal, and Joe Biden replaced him. In the European Union, there were no high-profile reshuffles at all, there were no high-profile events, and the European Central Bank is not ready even yet to tighten monetary policy, unlike the same Fed. Thus, the whole year can be called "corrective" for the euro/dollar pair. Let's hope that next year will be more active, but so that this activity is not caused by new waves and strains of coronavirus.

On the 4-hour chart, the pair's quotes performed an increase to the upper border of the semi-lateral, semi-descending corridor. The rebound from this line allows us to count on a slight drop in quotes in the direction of the corrective level of 161.8% (1.1148). However, at this time, the pair is not in a hurry to fall, but, on the contrary, it can close over the corridor, which will work in favor of the EU currency and some growth in the direction of the levels of 1.1404 and 1.1606. Emerging divergences are not observed in any indicator today.

News calendar for the USA and the European Union:

On December 31, the calendars of economic events in the European Union and the United States are again empty. The information background today will not affect the mood of traders.

EUR/USD forecast and recommendations to traders:

The rebound of quotes from the level of 1.1357 still happened, so it was necessary to open positions on this signal for sale. The target is the 1.1250 level on the hourly chart. I recommend buying the pair either on the signal of a rebound from the level of 1.1250 or the lower border of the side corridor on the hourly chart or the signal of a closure above the corridor. In the first case, the target will be the level of 1.1357, in the second - the level of 1.1450.