Throughout 2024, the US dollar traded with mixed dynamics but showed consistent strengthening over the past three months.
According to WSJ and Reuters, the following factors contributed to this growth:
→ Reports of a strong US economy and expectations that further interest rate cuts by the Federal Reserve will be limited.
→ Projections of policies under President-elect Donald Trump, which are anticipated to focus on tax reductions, increased tariffs, and stricter immigration controls.
During the low-volatility holiday trading period, the US Dollar Index—a tool measuring the dollar’s strength against a basket of major currencies—hovered around a two-year high, where it may close a strong year.
Meanwhile, the euro remains near two-year lows, but bulls hold onto hope.
As technical analysis of the EUR/USD chart indicates today:
→ The price is near a support level formed by an ascending channel (marked in blue).
→ Simultaneously, price fluctuations are shaping a bullish “cup and handle” pattern below the 1.0444 level—signalling growing interest among buyers.
A breakout above the red descending trendline could help bulls start 2025 confidently, potentially pushing the price higher from the lower boundary of the channel.
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