- Technical Analysis: The EUR/USD pair has shown a bullish trend with recent highs, reaching levels not seen in over a year. Technical indicators like RSI, MACD, and various moving averages suggest a buy signal, indicating continued bullish momentum. However, there are mentions of overbought conditions, which might suggest a potential for a pullback or consolidation.
- Fundamental Analysis:
- Economic Events: Upcoming US economic data, including the Non-Farm Payrolls (NFP) revision and FOMC minutes, could significantly impact the USD, thus affecting EUR/USD. If these events lead to a stronger or weaker than expected USD, it could push EUR/USD in either direction.
- Interest Rates: Expectations around the Federal Reserve’s rate decisions, particularly the possibility of rate cuts, could weaken the USD if markets price in dovish policy, potentially pushing EUR/USD higher. Conversely, any hawkish surprise could support the USD.
- FREE Forex signal for Monday 22/12/2025
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- Market Sentiment: From posts on X, there’s a mix of sentiments. Some traders are looking for dips to buy, expecting the bullish trend to continue, while others anticipate potential sell-offs or at least a stabilization due to overbought conditions or upcoming economic data.
- Price Levels to Watch:
- Support: Around 1.1131 and 1.1090.
- Resistance: Key resistance levels mentioned include 1.1180, with further resistance potentially at 1.1200 and 1.1250.
- Forecast: Given the bullish technical setup and the anticipation of market-moving events, here’s a balanced view:
- Bullish Scenario: If the US data disappoints or if there’s a dovish tilt from the Fed’s minutes, EUR/USD might test or break through 1.1200, aiming for 1.1250.
- Bearish or Consolidation Scenario: Should the USD find strength from better than expected data or hawkish comments, or if the market decides to take profits from recent gains, we might see EUR/USD pull back towards 1.1131 or even test lower supports around 1.1090.
Given the mixed signals but predominantly bullish technicals, if no significant negative news impacts the market, EUR/USD might continue its upward trajectory, albeit with caution due to overbought conditions. However, always be prepared for volatility around key economic releases.
Remember, forex markets can be unpredictable, and while this forecast is based on current data and sentiment, unexpected events can always shift market dynamics. Always consider your risk management strategies.
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