EUR/USD Hits 26-Month Low Amid Strong Bearish Momentum
The EUR/USD pair is currently trading around 1.0270, extending its sharp decline into the first trading sessions of 2025. This marks a critical moment as the pair reaches its lowest level in nearly 26 months, driven by a strong bearish momentum. On the 4-hour chart, EUR/USD remains entrenched within a descending channel, with resistance aligned at 1.0367 and lower support near 1.0213.
The pair's decline has been accelerated by a combination of factors, including weak eurozone fundamentals and relative strength in the US dollar due to persistent risk-averse sentiment. The moving averages, EMA 34 and EMA 89, are reinforcing the bearish setup, acting as dynamic resistance zones, while the lower boundary of the channel continues to provide temporary support.
In the short term, any recovery attempt will likely face stiff resistance around 1.0367, coinciding with the upper trendline of the channel. A failure to hold above 1.0213 could further expose the pair to a decline towards the psychological level of 1.0200 or even lower. Conversely, a breakout above 1.0367 would be required to neutralize the immediate bearish bias, opening the way for a potential test of 1.0450.
Traders should closely monitor US economic data and developments within the eurozone for additional cues. Continued thin trading conditions following the holiday season may amplify volatility in the coming sessions, necessitating vigilant risk management strategies.
The pair's decline has been accelerated by a combination of factors, including weak eurozone fundamentals and relative strength in the US dollar due to persistent risk-averse sentiment. The moving averages, EMA 34 and EMA 89, are reinforcing the bearish setup, acting as dynamic resistance zones, while the lower boundary of the channel continues to provide temporary support.
In the short term, any recovery attempt will likely face stiff resistance around 1.0367, coinciding with the upper trendline of the channel. A failure to hold above 1.0213 could further expose the pair to a decline towards the psychological level of 1.0200 or even lower. Conversely, a breakout above 1.0367 would be required to neutralize the immediate bearish bias, opening the way for a potential test of 1.0450.
Traders should closely monitor US economic data and developments within the eurozone for additional cues. Continued thin trading conditions following the holiday season may amplify volatility in the coming sessions, necessitating vigilant risk management strategies.
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