The Euro (EUR) may decline slightly, but it is unlikely to break the major support level at 1.1680. Analysts from UOB Group suggest a downward tendency for the EUR toward 1.1680 in the long term.<\/p>\n
On a short-term basis, the Euro fluctuated between 1.1713 and 1.1764, closing at 1.1719, indicating a 0.22% decrease. While a further drop may be anticipated, it is not expected to breach the 1.1680 support level. Resistance points stand at 1.1735 and 1.1750.<\/p>\n
In a medium-term perspective, the Euro peaked at 1.1807 last month before pulling back. This pullback shows momentum but is insufficient for a sustained decline. The focus remains on a potential move toward 1.1680. If the Euro drops below this level, a further decline to 1.1650 may occur. The current downward pressure persists unless the strong resistance level at 1.1775 is surpassed.<\/p>\n
The FXStreet Insights Team selects market observations from renowned experts, providing insights from both commercial and independent analysts.<\/p>\n
We are looking back at a time when the market was focused on 1.1680 as a major support level for the Euro. That old analysis from 2025 pointed to a mild downward bias, which we can now see was part of a much larger trend. Today, with the EUR\/USD trading around 1.0950, the entire landscape has changed.<\/p>\n
The most recent data we have from last week shows Eurozone inflation for December 2025 ticked up to 2.8%, which was slightly above forecasts. This persistent inflation is keeping European Central Bank officials sounding hawkish in their public statements. We believe this reduces the chance of any near-term rate cuts from the ECB.<\/p>\n
Meanwhile, the latest jobs report from the United States presented a solid but cooling labor market, giving the Federal Reserve more room to maneuver. This growing policy divergence, where the ECB remains firm while the Fed looks ahead to potential easing, is putting fundamental pressure on the Euro. Historically, periods of such policy divergence, like what we saw in 2022, often lead to sustained currency trends.<\/p>\n
For derivative traders, this environment makes buying EUR\/USD put options an attractive strategy over the next few weeks. With implied volatility near the lows we saw throughout much of 2024, the cost of purchasing options to speculate on a move towards 1.0800 is relatively inexpensive. This allows for a defined-risk way to position for further Euro weakness.<\/p>\n
The key level to watch on the upside is the 1.1000 area, which has acted as strong resistance over the past month. As long as we remain below this level, the path of least resistance appears to be lower. Any short-term rallies towards that resistance could be seen as opportunities to initiate new bearish positions.<\/p>\n","protected":false},"excerpt":{"rendered":"
Euro trends downward toward 1.1680 support, though breach unlikely; resistance at 1.1735 and 1.1750 remains.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38256","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=38256"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38256\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}