EUR/USD reversed sharply lower yesterday during the US trading hours and it seems that temporary top has been established on this pair around 1.3300 area. The fact is that price reversed impulsively lower through the impulsive channel, so we think that a deeper corrective and Christmas sideways price action will begin.

With that said, traders should not expect too much from this market as Christmas time approaches. Notice that for the past three years, EUR/USD always fell into a period of consolidation, so maybe we have a very slow days ahead of us. Be aware of it!

Forex Analysis by Gregor Horvat at ForexPros. com