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EURCZK Forecast – December-20-2023

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In today’s comprehensive EURCZK forecast, we will first scrutinize the price action of the currency pair. Following that, we will meticulously delve into the fundamental analysis pertaining to the trading asset.

EURCZK Forecast: Consolidation on the Horizon

FxNews – Upon examining the EURCZK chart, it’s evident that the currency pair has rebounded from the 24.21 mark. This level is in close proximity to the 38.2% Fibonacci support level. Subsequently, the bulls succeeded in not only closing but also stabilizing the EURCZK price above the previously established bearish trend line. Presently, the pair is approaching the lower line of the broken bullish channel. The lower band of the channel now serves as the resistance barrier. This resistance zone also aligns with the 61.8% Fibonacci resistance level.

The technical indicators appear promising for the continuation of the bullish wave. The Relative Strength Index (RSI) is maintaining a position above the 50 level, indicating a positive momentum. Furthermore, the Awesome Oscillator bars are green and positioned above the signal line, reinforcing bullish signals.

EURCZK Forecast - December-20-2023

EURCZK Forecast – Daily Chart

EURCZK Analysis: 4H Chart

For a deeper understanding of the EURCZK technical analysis, it’s beneficial to examine the lower time frame. On the 4-hour chart, the pair is observed to be trading within a bullish flag pattern. Additionally, a bearish engulfing and a long wick candlestick is noticeable. These candlesticks patterns promising a trend reversal.

These observations, combined with the divergence indicated by the Awesome Oscillator, allow us to finalize our EURCZK forecast. In conclusion, while the overall trend appears bullish, we anticipate a period of consolidation for the pair. This implies an expectation of a temporary dip in the EURCZK price. However, it is crucial for the market to close below the median line of the bullish flag for this decline to extend further.

EURCZK Chart

EURCZK Chart – 4H

Considering the overall trend of the currency pair, the lower line of the flag presents an attractive entry point for participating in the bullish market. This demand level is further reinforced by the 50% Fibonacci retracement level. As long as the pair stays above this level, the bullish technical analysis holds validity.

Czech Producer Inflation Rises in November 2023

Reuters – In November 2023, the Czech Republic experienced a slight increase in annual producer inflation, reaching 0.8% year-on-year. This rise comes after hitting a nearly three-year low of 0.2% in October, yet it fell short of the expected 1.0% forecasted by the market. The primary driver of this inflationary uptick was the rise in prices of electricity, gas, steam, and air-conditioning, which saw an increase from 7.0% to 8.0%.

Conversely, manufacturing costs continued their downward trend, dropping by 2.5% compared to a 3.0% fall previously. Similarly, the rate of inflation in mining and quarrying witnessed a marginal slowdown, moving from 40.2% to 39.7%, while the rate for water supply remained steady at 16.3%. On a month-by-month basis, there was a decline in producer prices by 0.4%, which was a deeper drop than the market’s prediction of a 0.2% decrease. This further descent follows a 0.1% fall recorded in October.

  • 20 December 2023
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