Saying Goodbye to 2024. Let’s Welcome 2025!
EUR/USD Rebounds at 1.0350. Double Bottom May Be the End of the Downtrend
As we are entering the last two trading sessions of 2024, the Forex market is clearly affected by end-of-year volatility and the economic calendar holds no major releases. EUR/USD spent most of 2024 in a range between 1.0600 and 1.1200, and the most significant moves were made in the latter part of the year, after a double top at 1.1200.
The year’s low at 1.0331 was achieved on November 22, after a massive dollar run that started after the double top at 1.1200 but was mostly fuelled by Donald Trump’s victory in the Presidential Race.
The US Dollar Index (DXY), which measures the greenback’s strength against a basket of 6 peers, reached a high of 105.098, a level that was last touched in late 2022.
Bitcoin reached new heights and broke the massive $100K mark, which means that 2024 will always be etched in crypto history as a legendary year.
Economic Calendar Highlights
Monday’s only notable releases will be the Chicago PMI and the Pending Home Sales, scheduled at 2:45 pm GMT and 3:00 pm GMT. These are not market-moving releases but it is difficult to anticipate how the USD will behave considering that the market is affected by irregular volatility.
Markets across the globe will be closed on Wednesday in celebration of New Year’s Day. Most brokerages and trading firms will pause their operations.
The last release of the week will be the ISM Manufacturing PMI, which is scheduled for Friday at 3:00 pm GMT. By then, volatility will probably start to normalize.
Technical Outlook – EUR/USD
The pair is currently trading at 1.0425 and it printed a double bottom at 1.0350. This support level was touched twice recently and each time it stopped the dollar’s strong momentum, so it will be an important level going into 2025.
Considering the double bottom, which is a strong bullish pattern, the price is likely to climb to meet the bearish trend line drawn from the double top at 1.1200. However, this prediction may be skewed by the irregular volatility that is already affecting the charts. In other words, be careful and mindful of moves that might seem odd under normal circumstances.
Happy New Year and Happy Trading in 2025!
