EUR/USD Analysis: Understanding the Forex Market Trends
On the last trading day of 2024, the EUR/USD price struggled to rise above the resistance level, ultimately settling near a two-year low. This downward trend was exacerbated by Spain’s stronger-than-expected inflation figures, highlighting the country’s unique economic situation within the Eurozone.
Forecasts for 2025: Euro Dollar Losses to Continue
Market analysts predict that the EUR/USD pair will continue its downward trajectory in January 2025. Historically, January has not been favorable for the euro against the US dollar, with the latter gaining strength and pushing the euro lower.
The technical analysis supports the view that the euro will face continued downward pressure, with any upward movements likely to be temporary.
Impact of US Stock Market Closure on Forex Trading
The US stock markets are set to close on January 9, 2025, in honor of former President Jimmy Carter. This closure may have ripple effects on the forex market, as financial institutions pause operations out of respect for the national mourning day.
EUR/USD Analysis Today: Despite recent gains, the broader trend suggests further downward movement for the pair. Factors contributing to euro weakness and the demand for the US dollar as a safe haven could drive the exchange rate towards parity. Technically, surpassing the nine-day exponential moving average could lead to additional gains in early January, with the US non-farm payrolls report shaping market sentiment for the year ahead.
Stay informed and trade responsibly in the ever-changing world of forex.
Source : www.dailyforex.com