The US dollar is supported by several aspects, including better economic growth figures and the latest comments coming from the FOMC voting members. The inflation is close to the Fed targets, but the tariffs that were promised by Trump may warm it up again. Moreover, FOMC members have recently commented on the situation with the interest rate and mentioned that they will be cautious in the future. 

The question is whether the US dollar will make some new gains before the inauguration. Let’s check some major assets to see the situation. 

EUR/USD: The Downside Pressure Is Still in Play

EUR/USD remains under pressure due to the divergence in expectations of interest rate cuts between the ECB and the Fed. While the first is ready to conduct some more expansionary rounds, the FOMC comments are more hawkish, which supports the US dollar.

The economic situation in the Eurozone remains unsustainable due to various factors. Moreover, expectations of a new round of so-called trade war add fears to the financial markets that the regional economic growth may cool more due to the fact that European goods will lose competition to the American ones due to higher prices in the US market. 

The latest German manufacturing data was also disappointing, which added pressure to the Euro. In general, the long-term and mid-term trends area downside, while in the short-term, we can see some upsides.

Technically, EUR/USD is trading in a tight range due to thin volatility. The currency pair is below the SMA50, which means that we have some selling pressure. However, markets are slow on the eve of Christmas and the situation may change by Friday. 

The closest support area is at 1.0360. By breaking below, the currency pair will target 1.0300. When it comes to the upside, the closest resistance is at the SMA50. If EUR/USD breaks above it, the closest target will be at 1.0440.

GBP/USD: Selling Pressure is in Place

The British pound is under pressure, and the Band of England is likely to cut rates at least a couple of times in 2025. While the economic situation is better than that of the Eurozone, some signs of slowdown are also in place. Moreover, the revised GDP data by the ONS shows that a recession may occur, which will push the Bank of England to cut rates. 

When it comes to long-term and mid-term forecasts, the US dollar is likely to make some new gains as compared to the British pound. However, in the short term, we can still have some upside movements that can be considered corrections.

When it comes to the technical analysis, GBP/USD is trading below the SMA50, which means that the currency pair is under pressure currently. The closest support level is at 1.2480, which prevents the currency pair from reaching 1.2400, which is a round number. On the upside, The British pound is testing the SMA50. The closest target for GBP/USD will be at 1.2590.

AUD/USD: The Downside Pressure is Paused

The Australian dollar was among the losers on Tuesday morning after the Reserve Bank of Australian Meeting Minutes confirmed that the RBA is more confident about inflation. However, similar to other assets, trading activity can be lower on the eve of Christmas.

While the RBA board is more convinced about inflation, risks still persist. According to the latest comments, the RBA still wants the policy to remain sufficiently restrictive until the RBA members are more certain about inflation.

RBA members have also mentioned that if the future data aligns with or falls below forecasts, it would add certainty about inflation and allow the central bank to cut rates. According to the RBA gov Michele Bullock, RBA has more room to stay in this restrictive cycle thanks to a better situation with the labor market.

The technical picture looks similar to EUR/USD and GBP/USD as the Australian currency stays below the SMA50, which means the bears have an advantage. On the downside, the closest support level is at 0.6100, which is a round level. On the upside, after breaking the SMA50, the currency pair will target 0.6270.

BTC/USD: Bitcoin is Under Pressure

While major currencies suffer from news coming from their countries, Bitcoin is under pressure due to the lack of updates. What we know at the moment is that Trump is likely to nominate crypto partisans to key posts, which will allow the US government to be more crypto-friendly in the future. However, markets are waiting for new updates from the future White House administration to make new steps. Currently, Bitcoin is in a deep correction, which may continue in the future.

When it comes to the situation on the chart, Bitcoin remains under pressure as it stays below the SMA50. The closest support level for the downside will be at 92,500. For the upside, after breaking the SMA50, the next resistance level will be at 96,350.