EURUSD Trade Setup – 11th Dec

The EUR/USD cross enter mid December at 1.1684 with the macro landscape tilting in favour of a stronger Euro versus the U.S. dollar. The Federal Reserve’s latest rate cut and dovish guidance have pushed U.S. yields lower and weighed on the dollar, while the European Central Bank remains in a more neutral stance with euro-area yields grinding higher. This divergence in policy expectations, combined with improving Eurozone data at the margin and a softer U.S. growth narrative, argues for buying euro dips rather than chasing the dollar. Our focus is on high-conviction opportunities only; for the week ahead, EUR/USD meets our A+ criteria with fundamentals, technicals and sentiment aligned in the same direction. EURUSD Trade Setup: Pair Bias & Entries Stop / Invalidation Targets Why A+ (Fundamentals, Technicals, Sentiment) Near-term catalysts (UK time) EUR/USD (1.1684) LONG – Buy dip 1.1620 – 1.1660. Core theme: USD softness after dovish Fed vs. steady ECB. 1.1540 – break below short-term trend support & last swing lows; below here, breakout above 1.1680 has clearly failed and risk opens toward 1.1400. (DailyForex) T1: 1.1800 T2: 1.1900  Fundamentals: Fed cut 25 bp to 3.5 – 3.75% with a dovish tilt, markets pricing further easing in 2026. weakling USD and lifting EUR near a 2-month high. ECB expected to hold at 2.15% through 2026.  Technicals: EURUSD has broken the 1.1680 resistance and is riding a bullish corrective trend above its EMA50 on the short-term charts. 1.1700 has been flagged for weeks as the key ceiling; a sustained break typically targets 1.1800.  Sentiment: Speculative positions are heavily long EUR (90–110k contracts net), but positions have started to roll off, so you want to buy pullbacks, not chase the spike. Likely stop-clusters from shorts above 1.1720 – 1.1750 and below 1.1600 from late-buyers. Tue 16 Dec: US NFP 13:30     Chart by TradingView – EURUSD Trade Setup – 11th Dec Conclusion In summary, EUR/USD currently presents a clean, asymmetric buy-the-dip opportunity into 1.1620 – 1.1660, with invalidation below 1.1540 and upside targets at 1.1800 and 1.1900. The combination of a softer Fed, relatively steadier ECB stance, constructive price structure above former resistance, and scope for a continued USD repricing supports our bullish bias. Traders should, however, remain mindful of incoming U.S. labour and inflation data as well as the ECB communication risk, which may temporarily increase volatility around our levels. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar FX Trade Setups please visit our FX Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice. TerraBullMarkets...