- EUR/USD stays under bearish pressure in the European morning on Friday.
- The technical outlook suggests there is more room on the downside before the pair turns oversold.
- The dovish ECB tone and persistent USD strength weigh on the pair.
EUR/USD stays on the back foot and trades near 1.0450 on Friday after closing the fifth consecutive day in negative territory on Thursday. The pair's near-term technical outlook shows that there is more room on the downside before the pair turns oversold.
Euro PRICE This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.03% | 0.91% | 2.00% | 0.54% | 0.37% | 1.34% | 1.66% | |
| EUR | -1.03% | -0.10% | 1.09% | -0.40% | -0.56% | 0.39% | 0.71% | |
| GBP | -0.91% | 0.10% | 1.00% | -0.30% | -0.46% | 0.49% | 0.81% | |
| JPY | -2.00% | -1.09% | -1.00% | -1.47% | -1.51% | -0.78% | -0.26% | |
| CAD | -0.54% | 0.40% | 0.30% | 1.47% | -0.12% | 0.79% | 1.12% | |
| AUD | -0.37% | 0.56% | 0.46% | 1.51% | 0.12% | 0.95% | 1.28% | |
| NZD | -1.34% | -0.39% | -0.49% | 0.78% | -0.79% | -0.95% | 0.31% | |
| CHF | -1.66% | -0.71% | -0.81% | 0.26% | -1.12% | -1.28% | -0.31% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
The European Central Bank (ECB) lowered key rates by 25 basis points (bps) following the December meeting, as expected. In its policy statement, the ECB said that most measures of underlying inflation suggest that inflation will settle at around the Governing Council's 2% medium-target on a sustained basis. In the post-meeting press conference, ECB President Christine Lagarde noted that they have discussed a 50 bps cut at the meeting and acknowledged that the recovery in the Euro area was slower than expected. The Euro came under selling pressure following the ECB event.
In the meantime, the US Dollar (USD) benefited from rising US Treasury bond yields in the American session on Thursday and didn't allow EUR/USD to stage a rebound. The data published by the US Bureau of Labor Statistics showed that the annual Producer Price Index rose by 3% in November, at a stronger pace than the market expectation and October's increase of 2.6%.
The economic calendar will not feature any high-tier data releases on Friday. Ahead of next week's highly-anticipated Federal Reserve meeting, profit-taking and position adjustments heading into the weekend could ramp up EUR/USD's volatility and trigger irregular movements.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart dropped below 40, reflecting a buildup of bearish momentum. On the downside, immediate support is located at 1.0440 (static level) ahead of 1.0400 (end-point of the latest downtrend) and 1.0330 (November 22 low).
Looking north, first resistance could be spotted at 1.0520 (100-period Simple Moving Average (SMA), 50-period SMA, Fibonacci 23.6% retracement of the latest downtrend) before 1.0600 (Fibonacci 38.2% retracement).
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day, according to data from the Bank of International Settlements. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% of all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
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 jumps back above 1.1000 on renewed US Dollar sell-off
EUR/USD is posting sizeable gains above 1.1000 in early Europe on Monday. EU prepares for retaliatory tariffs and rekindles the global trade war and US recession fears, drowning the US Dollar again aross the board. Traders now look to the EU Sentix and Retail Sales data.
GBP/USD holds recovery gains above 1.2900 amid fresh US Dollar weakness
GBP/USD clings to recovery gains above 1.2900 in European trading on Monday. The pair capitalizes on renewed US Dollar weakness as risk sentiment takes a fresh hit, with European traders hitting their desks. Trump's tariffs-led US recession fears and dovish Fed bets keep the USD undermined.
Gold price rebounds swiftly from multi-week low; lacks follow-through
Gold price reverses an Asian session slide to over a three-week low, though it lacks follow-through. Recession fears continue to weigh on investor sentiment and benefit the safe-haven commodity. Bets for more aggressive Fed rate cuts undermine USD and also lend support to the XAU/USD pair.
Crypto market wipes out $1 billion in liquidation as Asian markets bleed red
The crypto markets continue to decline on Monday, with Bitcoin falling below $78,000. The Asian markets also traded in the red, with Japan’s stock market extending losses to 8.5%, its lowest level since October 2023.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.