Euro ($EUR /USD)
Market Overview: The Euro is currently trading at $1.1708. It has enjoyed a strong December rally, climbing roughly 200 pips over the last few weeks. This is driven by a "neutral-to-hawkish" European Central Bank (ECB) and a weakening US dollar as markets prepare for further Fed rate cuts in early 2026.
Key Support: $1.1650 | $1.1580
Key Resistance: $1.1750 | $1.1820
Next Move: A brief consolidation or "pullback" to the $1.1680 zone as traders lock in profits before the Christmas holidays, followed by a potential push toward $1.18.
Trade Targets:
TG1: $1.1750 (short-term scalp)
TG2: $1.1810 (mid-term swing)
TG3: $1.1920 (Q1 2026 objective)
Short-Term Insight: Technical indicators like the RSI show a slight loss of upward momentum on the 4H chart, suggesting a temporary breather is healthy before the next leg up.
Mid-Term Insight: The fundamental trend is bullish. While the Fed is cutting rates (to 3.75%), the ECB is holding steady, making the Euro more attractive for yield-seekers.
Pro Tip: Watch the $1.1700 psychological handle. If the price closes below this on a daily timeframe, the "bull trap" is confirmed, and we could see a deeper drop to $1.1550. Otherwise, "buy the dips" remains the dominant strategy.
