The EUR\/USD currency pair has surpassed the upper limit of a descending channel, thus maintaining an upward trend, with support established at 1.1550. This development is noted by Soci\u00e9t\u00e9 G\u00e9n\u00e9rale’s FX analysts, who observe the momentum propelling towards a target of 1.1730. <\/p>\n
Recently, EUR\/USD defended an ascending trend line from August and slowly moved beyond the upper boundary of the descending channel. The short-term support has been identified at 1.1550, which, if maintained, could allow the upward movement to continue toward 1.1730 and the upper threshold of its multi-month range around 1.1800\/1.1830, an area potentially acting as a resistance.<\/p>\n
With EUR\/USD breaking out of its descending channel, we see this as a signal that the recent upward momentum is solidifying. The key for us in the near term is the defense of the 1.1550 support level. As long as the price remains above this pivot low, the path of least resistance appears to be higher.<\/p>\n
This technical breakout is happening as fundamental data supports a stronger euro against the dollar. Last week’s Eurozone CPI for November 2025 came in hotter than expected at 3.1%, while the most recent U.S. Non-Farm Payrolls report showed a slowdown in job creation. This divergence suggests the European Central Bank may need to remain more hawkish than a U.S. Federal Reserve that could be nearing a policy pivot.<\/p>\n
Given the upcoming central bank meetings next week, we are positioning for continued policy divergence to drive the pair. Market consensus is pricing in a firm, anti-inflationary tone from the ECB, whereas the Fed is expected to signal a pause. This backdrop reinforces the bullish technical picture for the euro.<\/p>\n
For traders, this is a clear opportunity to position for a move toward the 1.1730 target. Buying call options with a January 2026 expiry and a 1.1700 strike price offers a straightforward way to capture this potential upside. This strategy limits risk to the premium paid while providing significant leverage if the upward trend continues as we expect.<\/p>\n
Alternatively, selling cash-secured puts with a strike price at or just below the 1.1550 support level is another viable strategy. This approach allows us to collect premium based on the view that this critical support will hold in the coming weeks. Should the price dip, we would be assigned the currency pair at a level we already consider a strong technical floor.<\/p>\n
We are also noting that implied volatility in the FX options market has ticked up ahead of next week’s central bank announcements. The Deutsche Bank Currency Volatility Index (CVIX) has risen from a low of 6.8 to 8.2 over the past month. This makes options more expensive but also reflects the market’s anticipation of a decisive move.<\/p>\n
This setup reminds us of the reverse situation we saw back in 2022 when aggressive Fed policy drove the dollar higher while the ECB lagged. Now, in late 2025, the roles appear to be swapping, creating a sustained tailwind for EUR\/USD that we haven’t seen in several quarters. The major test will be the multi-month resistance zone around 1.1800\/1.1830.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/USD breaks above descending channel, holding support at 1.1550; targets 1.1730 with potential resistance ahead.<\/p>\n","protected":false},"author":5,"featured_media":16966,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-36010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/36010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/comments?post=36010"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/36010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media\/16966"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media?parent=36010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/categories?post=36010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/tags?post=36010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}