EUR/USD Current price: 1.0402
- Most financial markets are closed or set to an early end on New Year’s Eve.
- Expectations about another Donald Trump presidency fuel demand for the USD.
- EUR/USD stuck around 1.0400 in the last trading day of 2024.
The EUR/USD pair is poised to close 2024 at around 1.0400, trading within a quite limited range on the final day of the year. The US Dollar (USD) stands as the overall winner, having advanced against all of its major rivals. The Euro (EUR) is not among its worst-performing rivals, yet it is down roughly 6% against it.
Indeed, Donald Trump’s victory is among the main reasons behind the Greenback’s momentum and the political, financial and monetary consequences of Trump’s second mandate, even without him taking office just yet.
For starters, his pledge to impose heavy tariffs on Chinese, Canadian and Mexican imports has fueled concerns about reignited inflationary pressures. The Federal Reserve (Fed) has adopted a cautious stance in its December meeting and officials now see fewer interest rate cuts in 2025. The hawkish stance provided an extra boost to the USD in the final trading month of the year.
The fact that the United States (US) economy is performing better than those of its major peers adds to the USD bullish picture. Wall Street will operate regularly today, but bond markets are due to an early close. Little to no action is expected ahead of the New Year holiday, with financial markets coming back to life on January 2.
EUR/USD short-term technical outlook
The EUR/USD pair is trading around its daily opening, stuck to a 30 pips range. The overall stance is bearish, as the daily chart shows a bearish 20 Simple Moving Average (SMA) gaining downward traction and providing dynamic resistance at around 1.0470. At the same time, the 100 and 200 SMAs gain downward traction far above the shorter one, in line with the dominant selling interest. Technical indicators, in the meantime, have lost their directional strength but remain within negative levels.
The near-term picture is neutral-to-bearish. The 4-hour chart shows the pair seesaws around a flat 20 SMA while the longer ones maintain their downward slopes above the current level. Finally, technical indicators turned marginally lower but remained stuck around their midlines, lacking directional strength.
Support levels: 1.0370 1.0330 1.0290
Resistance levels: 1.0440 1.0470 1.0510
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD extends slide toward 1.0300, touches new two-year low
EUR/USD stays under bearish pressure and trades at its lowest level since December 2022 below 1.0350 on Thursday. The pair turned south amid a resurgent US Dollar demand and worsening market mood. Investors stay cautious at the onset of 2025, awaiting the US jobs data for fresh incentives.
GBP/USD slumps to multi-month lows below 1.2450
Following an earlier recovery attempt, GBP/USD reversed its direction and declined to its weakest level in nearly eight months below 1.2450. The renewed US Dollar (USD) strength on worsening risk mood weighs on the pair as markets await mid-tier data releases.
Gold benefits from risk aversion, climbs above $2,640
Gold gathers recovery momentum and trades at a two-week-high above $2,640 heading into the American session on Thursday. The precious metal benefits from the sour market mood and the pullback seen in the US Treasury bond yields.
XRP rockets 11% as Bitcoin starts New Year with bullish bang
Crypto majors zoomed higher in the past 24 hours as the market entered a widely expected bullish year, with Bitcoin inching above $95,000 to shake off losses from last week. XRP surged 11% to lead growth among majors as of Thursday, led by $1.3 billion worth of trading volumes on Korea-focused exchange UpBit.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.