(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

EUR/USD Plunges—Will Sellers Keep The Pressure On?

Article background

Aayush Jindal

Key Highlights

  • EUR/USD declined heavily below 1.1320 and 1.1250.
  • A major bearish trend line is forming with resistance at 1.1275 on the 4-hour chart.
  • GBP/USD started a consolidation phase below 1.3280.
  • USD/JPY could aim for a fresh increase if it closes above 159.00.

EUR/USD Technical Analysis

The Euro remained in a bearish zone below 1.1320 against the US Dollar. EUR/USD gained bearish momentum after it settled below 1.1300.

Looking at the 4-hour chart, the pair dropped below 1.1250 and 1.1200. It even tested 1.1165 and settled well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

It is now consolidating losses below the 23.6% Fib retracement level of the downward move from the 1.1380 swing high to the 1.1166 low. Immediate resistance could be 1.1250. There is also a major bearish trend line forming with resistance at 1.1275.

The first major resistance might be 1.1300. The next key resistance could be near 1.1320. A close above 1.1320 could result in a decent increase toward the 100 simple moving average (red, 4-hour) at 1.1420.

If there is another drop, the pair might find support near 1.1165. The first major support might be 1.1150. A close below 1.1150 might accelerate the decline. In the stated case, the pair might drop to 1.1080.

Looking at GBP/USD, the pair also saw a steady decline below 1.3320 and is now consolidating losses above the 1.3200 support.

Upcoming Key Economic Events:

  • Eurozone Services PMI for Sep 2026 – Forecast 53.0, versus 53.0 previous.
  • US S&P Global Manufacturing PMI for Sep 2026– Forecast 58.7, versus 58.7 previous.
  • US ISM Services Index for Sep 2026 – Forecast 55.7, versus 55.4 previous.
Excellent
Google Reviews
Open a Live accountOpen a Demo account
Loading