Often, around the end of the year, the market has a seasonal patch of USD weakness.
The major currency pairs can benefit from this. Now the EURUSD pair is inversely correlated with the USD index. So, USD weakness will equate to EURUSD strength.
We now see that over the last 22. years EURUSD has gained an average of +0.59% between December 23 and December 31.
So, will this result in some EURUSD strength again this time of the year?
Major Trade Risks:
If the USD find significant strength on risk off tones or thoughts the Fed will be hiking aggressively then that would invalidate this outlook.
Don’t just trade it, but Seasonax it!