EUR

It was a brutal Q4 for EUR/USD as the pair had its most bearish quarterly outlay since Q3 of 2022. But – that prior instance marked a key low and the final month of Q4 showed a higher-low in the pair.

Divergent monetary policies between the ECB and BOJ alongside trade wars and demand for safety could make things tricky for EUR/JPY bulls in 2025.

EUR/USD has recorded a 2% decline over the last five sessions, favoring the dollar and placing the euro in a sustained bearish zone.

While the headlines out of Europe have been largely negative, price action in the Euro hasn’t quite matched that pace. EUR/USD continues to push-higher while holding 1.0500 and EUR/JPY has pulled back from the early-week sell-off.

The Euro continued it’s Q4 descent against the US Dollar but it’s the recent build of bearish price action in EUR/JPY that’s of interest going into next week.

EUR/USD has taken a beating so far in Q4 but for the past week and the pair is testing the 1.0500 handle for a second time. For both Euro bears and Yen bulls, EUR/JPY could make for a more attractive argument for directional plays.

EUR/USD has vacillated wildly along with election odds and US expectations over the past few days. EUR/JPY has continued to hold a bullish trend following the topside breakout.

EUR/USD finally found some element of support that could hold a low as the pair looks to break what’s been a very bearish streak. Meanwhile, EUR/JPY looks bullish with another breakout to start this week.

EUR/USD is working on its 17th red day in the past 19, a stark contrast to the strength that drove for much of Q3 trade. The question now is how to work with what’s become an oversold move on the daily chart.

EUR/USD is red for the 14th day of the past 15, showing a stark change-of-pace to last month’s rate cut rally in the pair.

EUR/USD bears have taken a swing and the pair is now working on its 13th red day in the past 14. And before that, bulls were persistently pushing into the 1.1200 handle so the contrast is stark. The question now is how dovish the ECB sounds at tomorrow’s widely-expected rate cut.