Analysis of next week's market trendsEuro/US DollarFX:EURUSDDylanGoldmanBullish Driving Factors: 1.Expectations of Fed Interest Rate Cuts: Market confidence in the end of the Federal Reserve's tightening cycle continues to strengthen. The general expectation is that the Fed will begin cutting interest rates in 2026, with expectations of maintaining stable interest rates in January followed by two subsequent rate cuts already fully reflected in the futures market. This easing expectation is suppressing the US dollar index. As of December 27th, the dollar index was around 98.12, and momentum factors and CFTC positioning divergence indicate that the dollar is oversold, with limited short-term rebound potential, indirectly providing upward support for the euro. 2.European Central Bank's Hawkish Policy Stance: The European Central Bank (ECB) maintained the deposit facility rate at 2% at its December meeting. President Lagarde reiterated the "good state" of the economy and emphasized retaining the option to raise interest rates, curbing previous market expectations of excessive policy easing. Executive Board member Schnabel also explicitly stated that there would be no interest rate hikes in the "foreseeable future," a patient tone that eased market concerns about premature policy tightening in the Eurozone, providing fundamental support for the euro exchange rate. 3.Technical Trend Continuation Momentum: From a technical perspective, the EUR/USD is in a clear upward channel, with the price consistently staying above key moving averages such as the 50-day moving average (approximately 1.1760), indicating a strong short-term trend. The daily 20-day moving average is trending upwards, and the 60-day moving average has shifted from a downward trend to a low-angle upward trend, indicating a gradually improving long-term trend; the 4-hour MACD indicator shows a bullish crossover followed by expansion, with the red histogram widening, indicating that short-term upward momentum is accumulating. 4.Emerging Resilience in the Eurozone Economy: German import prices rose by 0.5% month-on-month, higher than the expected 0.1%, and the year-on-year decrease was smaller than expected, suggesting that imported inflationary pressure has not subsided as expected, to some extent supporting the ECB's hawkish stance. At the same time, the Eurozone economic surprise index remains near historical highs. Although there is a risk of a decline, the short-term negative impact on the euro is manageable. EUR/USD trading strategy buy：1.17500-1.17600 tp:1.17800-1.18000