EUR/USD Continues Its Bullish Momentum – In-Depth Analysis for December 30, 2025
Original analysis by Economies.com
The EUR/USD currency pair remains firmly on its upward trajectory during the last trading sessions of 2025. The persistent bullish sentiment continues to drive momentum, supported by a confluence of technical and fundamental signals pointing toward further gains in the near term.
In this comprehensive analysis, we explore the prevailing market conditions, the latest price movements, technical scenarios, and forward-looking expectations for EUR/USD based on key chart patterns and economic data. This breakdown is intended for forex traders, analysts, and market enthusiasts seeking a thorough understanding of the euro-dollar outlook as the year comes to a close.
Current Price Setup and Technical Trends
EUR/USD has been advancing steadily following its recent breakout from previous resistance zones. The bulls remain in control as the pair maintains movement above key support levels. Price action has confirmed the continuation of the bullish trend through a series of higher highs and higher lows on intraday and daily charts.
Key technical observations:
– The pair continues to form a stable bullish channel on the hourly and daily charts.
– Support is reinforced by the ascending trend line connecting recent lows, which has not been broken since the rally began in early December.
– The price is trading above its 50-day and 100-day Exponential Moving Averages (EMAs), further validating the strength of the ongoing uptrend.
– RSI (Relative Strength Index) is showing healthy levels around 60, indicating that the bullish momentum is sustainable without immediately entering overbought territory.
– Momentum oscillators suggest growing buying activity, although some minor retracements may occur as part of normal corrective behavior.
After consolidating near the psychological level of 1.1100, EUR/USD has resumed upward movement and is attempting to breach the next key resistance level, which is currently viewed around 1.1150.
Technical Indicators Supporting Bullish Bias
Several technical indicators are presenting a bullish bias for the EUR/USD pair. Traders watching key signaling tools are aligning their positions accordingly.
Important indicators and their implications:
– Moving Averages:
– The 50-day EMA is currently trending above the 100-day EMA, confirming a solid bullish crossover that occurred earlier in December.
– The narrow gap between the 200-day Moving Average and short-term MAs suggests room for further upward acceleration if gains are sustained.
– RSI and Stochastic Oscillator:
– RSI is hovering in the 58 to 65 range, typically indicating a bullish setup while warning of potential short-term exhaustion if the index exceeds 70.
– The Stochastic oscillator has recently flashed a fresh bullish crossover on the 4-hour timeframe, a sign of renewed buying interest after consolidation.
– Fibonacci Levels:
– Using the latest swing from 1.0890 to 1.1115, the 61.8% Fibonacci extension projects a potential test toward 1.1180 if the current breakout gains traction.
Trend Continuation Factors
The continued upward strength in EUR/USD can be attributed to a combination of internal technical structure and broader macroeconomic themes.
Key supporting factors include:
– Improved sentiment around the eurozone’s economic stabilization in Q4 2025, particularly in manufacturing and services indices.
– Weakness in recent U.S. data, particularly softer-than-expected inflation readings, which has slightly dampened Federal Reserve hawkishness.
– Hawkish tone from select European Central Bank (ECB) policymakers suggesting limited room for interest rate cuts in early 2026.
Predictive Trend Models
Based on current momentum and technical overlays, predictive modeling favors continued appreciation in the EUR/USD over the coming trading sessions. Barring any unexpected geopolitical developments or macroeconomic surprises, algorithms analyzing ATR (Average True Range) and momentum divergence highlight a moderate upside bias.
Analyst Projections
According to Economies.com’s analysis, if the EUR/USD manages to maintain daily closes above 1.1110, the next immediate
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