Several factors suggest EURUSD could test parity in 2025.
But what does this mean for traders, and could it present an opportunity?
In today’s video, I’ll show you how I’m trading EURUSD in 2025 and share an update on the US Dollar Index (DXY).
EURUSD remains range-bound, but several technical factors point to a move to parity in early 2025.
The pair has been in a steady downtrend since October, showing no signs of letting up.
A weekly imbalance near 1.0100 and the potential formation of lower highs leading into 1.0350 support further reinforce the bearish outlook.
Levels like parity often act as magnets for price action, especially as the market inches closer.
Despite this setup, EURUSD remains constrained between 1.0350 and 1.0450.
Until one of these levels breaks on higher time frames, traders should expect tight trading conditions, particularly with the New Year approaching.
To confirm a breakdown, at least two daily closes below 1.0350 are needed.
However, a weekly close beneath this level would provide stronger confirmation, opening the door to the 1.0000–1.0100 area.
A retest of parity in early 2025 could also serve as a bottoming signal for EURUSD.
This scenario aligns with my long-term target for the DXY at 110.00, with the USD likely topping out between 110.00 and 110.70 next year.
For now, I’ll continue to watch for EURUSD shorts following a confirmed break below 1.0350.
