Post-Christmas trading conditions on the financial markets are calm. In the absence of the "human factor" at Christmas, however, there was a temporary, available drop in the EUR/USD rate, which was reflected in related pairs. Traders can treat the behavior of trading algorithms as a clue for the re-evaluation of the Euro. At the beginning of the new year, the market participants should expect major and more durable rally on EUR/USD.
Slightly weaker moods on Wall Street with a stable US Dollar, a decline in the long-term, but a further increase in short-term yields on US government bonds is the picture of the first post-Christmas session in the US. Goods recorded a clear rise in prices. Oil and Copper prices have jumped to the highest level in 2.5 years. Another session up in a row was also on Gold.
Liquidity in the markets is generally reduced, therefore, the changes taking place in the last days of the year must be approached with a certain distance. Nevertheless, on these assets, where there is a continuation of the movements from before the holiday break, one can speak about the existence of a potential that will most likely also be revealed next year. However, the Dollar and the Euro cannot be discussed in this situation, because both currencies went yesterday against the prevailing tendencies. However, ahead of us are 3 full days of trading, which can potentially give good clues on how the markets will behave in the first days of the new year.
Let's now take a look at the Gold technical picture at the H4 time frame. The price has hit the 78% Fibo retracements at the level of $1,285 after a gap up from the level of $1,277. The next target for bulls is the technical resistance area at the level of $1,288 - $1,290. Please notice the overbought trading conditions at the current time frame. which might result in a temporary pull-back towards the level of $1,275.
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