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Introduction to EUR/USD

The EUR/USD currency pair, also known as the “Fiber,” is one of the most actively traded forex pairs globally. It represents the exchange rate between the Euro, the official currency of the Eurozone, and the US Dollar, the world’s primary reserve currency. As a benchmark pair in the forex market, it often reflects macroeconomic differences and central bank policy shifts between Europe and the United States. Traders rely on EUR/USD movements to gauge overall sentiment in global financial markets.

EUR-USD Market Overview

The EUR-USD pair remains in focus as central bank dynamics and economic data weigh heavily on both sides. On the US Dollar front, attention is shifting to Federal Reserve Governor Michelle Bowman’s testimony before the House Financial Services Committee, with traders looking for hawkish clues regarding future rate hikes. Consumer confidence remains a key point, with recent indicators from RealClearMarkets showing signs of caution, while domestic vehicle sales are stable, signaling ongoing consumer demand. In Europe, the Euro finds support amid several critical economic reports. The Eurostat CPI Flash estimate shows inflation remains sticky, with core inflation maintaining pressure on the European Central Bank. Unemployment data from France and the broader Eurozone indicates resilience in labor markets, which may support the ECB’s cautious stance. As the year draws to a close, traders are watching inflation prints and budget outcomes from France to assess the likelihood of any policy shifts going into Q1 2026.

EURUSD Technical Analysis

The EURUSD daily chart shows a strong upward price channel that began forming in early 2025, with price currently trading near the mid-to-upper bounds of the channel. After recording its highest level since 2021 at 1.19176 in September 2025, the pair has corrected slightly but remains above key support levels. The center price line at 1.15615 and the psychological 1.15000 zone serve as near-term support, while the 1.16550 level, which aligns with the price channel’s high, acts as immediate resistance. Momentum indicators show mixed signals: the TRIX (18) indicator reads -2.53, indicating a slight bearish divergence, but the CCI (20) at 86.58 suggests bullish momentum still holds. The price action shows consolidation near the centerline of the channel, hinting at a possible bullish continuation if resistance is cleared or a retracement to the lower channel line if sentiment weakens. Overall, the pair remains technically bullish in the medium term.

Final Words About Euro vs US Dollar

As we approach year-end 2025, EUR/USD is holding firmly above key psychological and technical support levels. Continued strength in Eurozone inflation and labor market stability supports the Euro, while USD traders remain cautious ahead of high-impact Fed testimonies and economic confidence reports. If bullish momentum continues and the pair breaks above 1.16550, we could see a retest of the 1.18–1.19 resistance zone. However, failure to maintain this level may lead to a move back toward 1.15600 or lower, particularly if USD strength returns with more hawkish Fed rhetoric. Traders should closely monitor macroeconomic releases and remain cautious during high-volatility periods.

Disclaimer: This EURUSD analysis, provided by Unitedpips, is for informational purposes only and does not constitute trading advice. Always conduct your own Forex analysis before making any trading decisions.