FX.co ★ Trading plan for EUR/USD and GBP/USD on December 20

The week started with a rise in euro and pound, however, it looked more like a rebound following the recent ECB board meeting as the two went back down during the European trading session. It lost all the gains it had from the beginning of the week, with pound even falling below its opening price.

Presumably, the data on wage growth in the eurozone was the reason as it was expected that it would remain unchanged despite previous data being revised downwards from 4.1% to 3.2%. The rate of wage growth also slowed to 2.1%.

It was actually surprising that the market showed a reaction to this data as it normally has no impact at all. This clearly suggests that investors are in favor of a stronger dollar, which is hardly surprising when you look at the results of not only the European Central Bank, but also the Federal Open Market Committee meetings.

Wage growth (Europe):

Today, due to a completely empty macroeconomic calendar, dollar will continue to rise, albeit just slightly.

EUR/USD will likely halt around 1.0580/1.0660, which could become a lever for new speculative price spikes. A breakout is needed for the pair to see new strong movements.

In GBP/USD, quotes have bounced back, causing pound to lose about 350 points. The psychological level of 1.2000/1.2050 is a key support in the way of the sellers.