**The Euro’s Bullish Momentum** The Relative Strength Index is stable in the upper 50s, showing that the Euro is gaining strength as it holds above the 50-day moving average of 1.1607. While attempts to climb towards the lower 1.17 area have faced some resistance, it looks like the Euro will trade within a range of 1.16 to 1.17, with little resistance before reaching 1.18. Insights from the FXStreet Team include observations from experts and analyst notes. As of December 9, 2025, the Euro is sticking to a tight range against the dollar around the mid-1.16s. This lack of movement for four days indicates that pressure is building. Derivative traders should remain cautious, as this calm often precedes a major price move. **Volatility and Market Expectations** The options market shows this tension, with one-month implied volatility for EUR/USD at a low 6.1%, down from earlier highs this year. This suggests that while things seem calm, option prices are inexpensive, creating a good chance to prepare for a future price change. Selling volatility has been a good strategy lately, but the risk of a sudden price change is increasing. On the economic front, there is a conflict between a hawkish European Central Bank (ECB) and weak economic data. Germany’s recent trade figures revealed unexpectedly low imports, indicating declining domestic demand. This is echoed by the latest ZEW Economic Sentiment survey, which dropped to 45.2. In contrast, ECB policymakers are signaling that they will keep interest rates high to fight the recent Eurozone core inflation rate of 2.8%. From a technical viewpoint, the Euro remains above its 50-day moving average (1.1607), and a steady RSI in the upper 50s suggests a slight bullish trend. This situation reminds us of a similar pattern in late 2023, right before the Euro climbed higher. Therefore, buying long-term call options or setting up bull call spreads to target a move towards the 1.1800 resistance level could be a smart tactic. Looking forward, the key event will likely be the ECB interest rate decision on December 18. Traders might consider using long straddles or strangles to benefit from a breakout from the 1.1600-1.1700 range, as we can expect increased volatility during this event. The current lack of price movement is unlikely to last, making it important to prepare for the change. Create your live VT Markets account and start trading now.

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