EUR/USD Remains Under Pressure as Stronger Dollar and Rising Oil Prices Weigh; US CPI in Spotlight

EUR/USD extended its decline on Monday, coming under renewed pressure as a stronger US dollar and rising crude oil prices pushed the pair toward fresh lows for 2026 and the lower boundary of its recent one-week consolidation range.

The near-term outlook remains tilted to the downside, with investors bracing for Wednesday’s US CPI report, which is expected to show a further rise in inflation. A stronger inflation reading could reinforce expectations that the Federal Reserve may need to maintain a restrictive stance for longer, despite widespread forecasts that policymakers will leave interest rates unchanged at the October 28 meeting.

Technical conditions on the daily chart continue to favour the bears. While oversold RSI readings may generate occasional corrective rebounds, upside attempts have so far remained limited and repeatedly stalled below the descending 10-day moving average, indicating that sellers retain firm control of the broader trend.

On the downside, immediate support is seen at 1.1130, marking the 50% retracement of the 1.0177/1.2082 rally, followed by the key 1.1100 level, where the 200-week moving average converges with psychological round-number support. A decisive break below this zone would expose the major psychological support at 1.1000.

Overall, the pair is expected to remain vulnerable while trading below near-term resistance levels, with upcoming US inflation data likely to provide the next key directional catalyst.

Res: 1.1215; 1.1242; 1.1276; 1.1320
Sup: 1.1160; 1.1130; 1.1100; 1.1065