EUR/USD Hits Lowest Level in 17 Months

Bears accelerated their advance on Thursday, driving EUR/USD deeper into its broader downtrend and to its lowest level since late May 2025. The pair remains under pressure from a combination of factors, including the inflationary impact of rising oil prices on the already fragile eurozone economy, heightened political uncertainty, and continued U.S. dollar strength.

EUR/USD broke below the 1.1300 psychological mark for the first time in 17 months, sliding to a low of 1.1265, which aligns with the 261.8% Fibonacci expansion of the extended third wave within the five-wave cycle from the August 21 peak at 1.1711. The pair remains on track for a third consecutive weekly decline.

Daily technical studies continue to point lower, reinforcing the bearish near-term outlook. However, overstretched 14-day momentum and an oversold RSI signal that downside momentum may begin to encounter stronger resistance.

Any pause in the decline is likely to result in a period of consolidation or a limited corrective rebound, given the increasingly negative fundamental backdrop. Initial resistance is seen at the former low of 1.1324 (June 24), followed by the descending 10-day moving average at 1.1387. These levels are expected to attract renewed selling interest and could provide better opportunities for bears to target 1.1200, a key psychological level, ahead of 1.1130, the 50% retracement of the 1.0177 to 1.2082 rally.

Res: 1.1324; 1.1355; 1.1387; 1.1411
Sup: 1.1265; 1.1200; 1.1130; 1.1100