{"id":16224,"date":"2025-01-03T07:56:43","date_gmt":"2025-01-03T07:56:43","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=16224"},"modified":"2025-01-03T07:56:43","modified_gmt":"2025-01-03T07:56:43","slug":"eur-usd-tests-multi-year-lows","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/eur-usd-tests-multi-year-lows\/","title":{"rendered":"EUR\/USD Tests Multi-Year Lows"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image_fx_-76-1024x559.png\" alt=\"\" class=\"wp-image-16631\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Key Points<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EUR\/USD dropped to <strong>1.02244<\/strong>, its lowest level since November 2022, before recovering to <strong>1.02729<\/strong>.<\/li>\n\n\n\n<li>Next support is at <strong>1.0200<\/strong>, a 23.6% Fibonacci retracement level, while resistance lies near <strong>1.0300<\/strong>.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>EUR\/USD started 2025 with strong bearish momentum, breaking below the psychological <strong>1.0300<\/strong> level for the first time since late 2022. The pair\u2019s move to <strong>1.02244<\/strong> reflects sustained selling pressure, driven by diverging monetary policies between the Federal Reserve and the European Central Bank (ECB).<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The euro has kicked off the year on a grim note, and hedge funds see it hurtling toward parity with the dollar \u2014 if not lower \u2014 in the coming months <a href=\"https:\/\/t.co\/JfoULJGXlI\">https:\/\/t.co\/JfoULJGXlI<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1875078736904654868?ref_src=twsrc%5Etfw\">January 3, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>While the Fed is expected to cut rates by just <strong>44 basis points<\/strong> this year, markets anticipate a more aggressive <strong>100 bps of easing<\/strong> from the <a href=\"https:\/\/t.co\/z7TAdoUI16\">ECB<\/a>. This widening interest rate differential has reinforced dollar strength, keeping EUR\/USD under pressure.<\/p>\n\n\n\n<p><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/usd-hikes-as-u-s-economic-strength-drive-gains\/\">USD Hikes as U.S. Economic Strength Drive Gains<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-3-1024x450.jpg\" alt=\"\" class=\"wp-image-16225\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: EURUSD consolidates near 1.027 as momentum stabilises, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>Looking at the chart, EURUSD stabilised near 1.02729 after bouncing off a session low of 1.02244. The pair faced early selling pressure but found strong support at 1.022 before recovering modestly.<\/p>\n\n\n\n<p>The <strong>1.0200 level<\/strong>, corresponding to the <strong>23.6% Fibonacci retracement<\/strong> of the <strong>2021-2022 major move<\/strong>, is the next critical support zone for EUR\/USD. This level has historically been a turning point:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>61.8% retracement<\/strong> capped the 2023 high.<\/li>\n\n\n\n<li>The <strong>38.2% retracement<\/strong> provided support in April 2024 and acted as resistance in December.<\/li>\n<\/ul>\n\n\n\n<p>Given the proximity of recent lows to <strong>1.0200<\/strong>, this level could attract buying interest, particularly as the pair shows signs of being oversold. <\/p>\n\n\n\n<p>The <strong>MACD histogram<\/strong> on the chart indicates waning bearish momentum, supporting the possibility of a bounce.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Looking Forward<\/h2>\n\n\n\n<p>As EUR\/USD stabilises near its recent lows, market participants might anticipate further consolidation before any significant directional move.<\/p>\n\n\n\n<p>A recovery toward <strong>1.0300<\/strong> could materialise if buyers step in near support, but sellers may continue to target <strong>1.0200<\/strong> and beyond if bearish momentum builds.<\/p>\n\n\n\n<p>While the pair\u2019s medium-term outlook remains influenced by the <a href=\"https:\/\/t.co\/VhaNNUfWeQ\">policy divergence<\/a> between the Fed and the ECB, oversold technical conditions suggest that short-term volatility could present trading opportunities in either direction.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>&nbsp;now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>EUR\/USD hits 1.02244, its lowest in two years, before rebounding to 1.02729. Key focus on 1.0200 Fibonacci support. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":16631,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[10],"class_list":["post-16224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-forex"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/16224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=16224"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/16224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16631"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=16224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=16224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=16224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}