EUR/USD is on the rise after breaking a short-term downtrend and is currently near a key resistance point around 1.18. The resistance zone between 1.1800 and 1.1830 is crucial, as it may impact whether a larger upward trend forms. A slight pullback is happening, with the 50-Day Moving Average (DMA) near 1.1610 being an important level for continued upward movement. If the pair breaks through 1.1800/1.1830, potential targets could be the September high of 1.1920 and 1.2000.

Global Currency Trends

In addition, GBP has been recovering after the Bank of England cut interest rates by 25 basis points to 3.75%. In New Zealand, NZD/USD has found support at 0.5755, although bullish momentum is fading, and gold prices are moving within a range as the market awaits US CPI data. The USD remains stable ahead of the November CPI release. FXStreet offers insights and market observations from expert analysts. The site also highlights various brokers, covering top Forex brokers for 2025, those with low spreads, and the best options available in Latin America. Readers are encouraged to subscribe for daily updates. EUR/USD has moved higher but is now testing a significant ceiling around the 1.1800 level. How it behaves in this area over the next few days could set the tone for early 2026. There seems to be a brief consolidation phase as the market decides on its next move. Considering the uncertainty near resistance, a strategy could involve preparing for a bullish breakout by looking at call options with strike prices at 1.1900 or 1.2000. This outlook is supported by the latest US inflation data for November 2025, which showed a rate of 3.1%, slightly lower than expected and possibly weakening the dollar. This data strengthens the likelihood of the pair breaking through resistance in the coming weeks.

Market Strategies

There is a noticeable divergence in central bank policies. After its last meeting, the Federal Reserve indicated a more dovish approach, with markets anticipating potential rate cuts in 2026. Meanwhile, the European Central Bank appears cautious about easing its policy, which could benefit the euro. However, there is a risk of rejection at the 1.1830 zone, which could lead to a pullback towards the 50-day moving average near 1.1610. A potential strategy in this case would be to buy put options or set up bear call spreads to profit from a downward move. This bearish outlook aligns with recent growth data from Q3 2025, showing the US economy growing at a robust 4.9%, while the Eurozone contracted by 0.1%. With these mixed signals, traders could utilize options to manage the expected volatility without committing to a specific direction. A long straddle—buying both a call and a put option—would profit from significant price movements above 1.1830 or below 1.1610. It will be crucial to watch how the pair reacts at these key levels as we approach the year’s end. Create your live VT Markets account and start trading now.

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