EUR/USD Technical Analysis – December 15, 2025
(Adapted and expanded from an article by Fawad Razaqzada, originally published on DailyForex.com)
The EUR/USD currency pair is experiencing a notable resurgence, driven by a combination of technical and macroeconomic factors that are shaping the market sentiment as we move into mid-December 2025. As traders digest recent U.S. inflation data and assess expectations for Federal Reserve policy, the euro has shown signs of renewed strength against the U.S. dollar. This technical analysis explores the price action of EUR/USD, highlighting key support and resistance levels, trend indicators, and potential scenarios going forward.
Overview of Recent Price Action
– On Friday, December 14, EUR/USD traded through notable resistance levels, extending a bullish run that started from around the 1.0750 region in early December.
– The pair gained upwards momentum after breaking through the 1.0900 handle. It advanced to the 1.1000 territory, where psychological and technical resistance resides.
– The market’s reaction to the recent U.S. Consumer Price Index (CPI) report has significantly impacted sentiment. The data pointed to easing inflationary pressures, which in turn has decreased expectations for prolonged tight monetary policy from the Fed.
– As of the time of writing, EUR/USD was trading slightly below the 1.1000 level but was showing resilience above intermediate support zones.
Technical Analysis: Key Support and Resistance Levels
The technical outlook for EUR/USD has turned increasingly bullish in the short term. The following levels and patterns are currently of critical importance:
Support levels:
– 1.0960 to 1.0940: This is the upper bound of the previous resistance which may now act as a support zone. Price action in this zone will help determine whether bulls can maintain momentum.
– 1.0900 to 1.0880: Previously a resistance cluster and now potentially supportive, especially as moving averages converge in this range. A drop back below this level would reintroduce bearish risks.
– 1.0800: Known as a psychologically significant round number, this serves as a key fulcrum in traders’ decision-making.
– 1.0750: The base from which the pair began this latest bullish move. If price were to return to this region, it would likely indicate a significant shift in sentiment.
Resistance levels:
– 1.1000: The primary psychological resistance barrier. A confirmed break above it could trigger a bullish breakout targeting late-summer highs.
– 1.1075 to 1.1100: This region includes highs posted back in August 2025. If the EUR/USD pair surpasses this zone, it would confirm a medium-term trend reversal.
– 1.1200: A longer-standing area of interest dating back to early 2023. Reclaiming this level would provide considerable bullish confirmation.
Price Patterns and Indicators
Several technical indicators and chart patterns point toward bullish momentum building in the EUR/USD pair:
– Moving Averages:
– The 50-day Simple Moving Average (SMA) has begun to turn upward and is nearing a potential crossover with the 100-day SMA. A bullish crossover would validate further upward traction.
– Price has remained above the 200-day SMA since early December, signaling a long-term bullish bias.
– Relative Strength Index (RSI):
– The RSI is currently hovering near 65 on the daily chart, suggesting the pair is approaching overbought levels but has not yet reached saturation. This leaves room for more potential upside, especially if resistance zones are breached.
– MACD (Moving Average Convergence Divergence):
– The MACD has maintained a bullish divergence since the rebound from 1.0750, and the histogram remains elevated. While the signal line is flattening slightly, the overall momentum is still in buyers’ favor.
– Trendlines:
– A short-term bullish
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