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EUR/USD flatlines near highs on year-end trading lull

EUR/USD is trading lower for the fourth consecutive day on Monday, changing hands near 1.1770 after having peaked at levels right above 1.1800 last week, as the US Dollar (USD) recovers slightly in a calm trading session.

🔗 Source

💡 DMK Insight

EUR/USD’s drop to around 1.1770 signals a potential shift in market sentiment. After peaking above 1.1800 last week, the pair’s four-day decline suggests traders are reassessing their positions, particularly as the USD shows signs of recovery. This could be a reaction to recent economic data or speculation around upcoming Federal Reserve decisions. If the pair breaks below the 1.1750 support level, we might see further downside, potentially targeting 1.1700. On the flip side, if it manages to hold above 1.1750, it could indicate a consolidation phase before another attempt at the 1.1800 resistance. Keep an eye on US economic indicators this week, as they could influence the dollar’s strength and, consequently, the EUR/USD dynamics.

📮 Takeaway

Watch for EUR/USD to hold above 1.1750; a break below could target 1.1700, while resistance at 1.1800 remains critical.

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