EUR/USD Slides to Fresh Multi-Month Lows as Eurozone Debt Concerns Intensify

The euro slipped to a fresh multi-month low in early Monday trading as sentiment deteriorated further amid mounting concerns over the bloc’s deepening debt crisis. The sharp selloff in French government bonds intensified fears that the EU’s second-largest economy may struggle to rein in its budget deficit.

Political uncertainty ahead of the 2027 presidential election has added to the negative backdrop, raising concerns that fiscal stress could spill over to other parts of the region.

The pair continues to extend the steep decline seen over the past four weeks and remains under pressure in the opening days of October, after closing September with a 2.5% loss.

The daily chart remains firmly bearish, with momentum indicators holding negative territory throughout the past month. However, the deeply oversold RSI suggests sellers may pause before making another push lower, particularly ahead of key support levels at 1.1130, the 50% retracement of the 1.0177-1.2082 rally, and 1.1098, where the 200-week moving average stands.

Any corrective rebound is expected to remain capped below the 1.1330/55 zone, marked by a former low, the 10-day moving average, and the broken 38.2% Fibonacci retracement. Holding below this area would keep the bearish outlook intact and maintain focus on the 1.1130/00 support zone. A break beneath this region would expose the psychological 1.1000 level as the next downside target.

Res: 1.1260; 1.1330; 1.1355; 1.1379
Sup: 1.1160; 1.1130; 1.1100; 1.1065