EUR/USD Price Forecast: US Dollar buyers stand victorious at end of 2024

Valeria Bednarik FXStreet

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

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits fresh 2026 lows near 1.1570

EUR/USD adds to Monday’s heavy losses and reaches new yearly lows around 1.1570 on Tuesday. The pair’s deep pullback comes as the US Dollar extend its strong bounce, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold meets buyers around $5,000, remains under pressure

Gold comes under renewed and marked selling pressure on Tuesday, dangerously approaching the critical $5,000 mark per troy ounce, reversing at the same time four consecutive daily advances. The yellow metal’s bearish tone comes on the back of the increasing demand for the Greenback and investors’ repricing of Fed rate cuts.