EURUSD Continues Sharp Decline as Bears Seize Command Following US Inflation Figures and ECB Policy Announcement

The Euro’s downward trajectory persisted on Friday, hitting fresh lows for 2024, marking the third consecutive day of significant declines. This downturn positions the currency pair for its most substantial weekly loss since the second week of May 2023.

The Euro stumbled following the release of US inflation data earlier this week, which exceeded expectations. Additionally, the European Central Bank’s unexpectedly dovish stance on monetary policy added further pressure to the single currency.

A sustained breach of the critical 1.0700 support zone (comprising the Fibonacci 61.8% retracement of the 1.0448/1.1139 range, psychological significance, and former 2024 low) is anticipated to trigger additional weakness.

Bears are targeting subsequent levels at 1.0628/11 (including the 100-week moving average and Fibonacci 76.4%), with potential extensions toward significant medium-term support at 1.0448 (the low of October 3, 2023).

The bearish tone in daily technical indicators supports a negative outlook, with any corrective moves amid oversold conditions likely to provide opportunities for re-entering the bearish market.

Previously pivotal support zones at 1.0695/1.0724 now act as initial resistance levels, with any upward movement expected to be limited by the descending daily Tenkan-sen line (currently at 1.0776), thereby maintaining bearish moment.

Res: 1.0695; 1.0724; 1.0762; 1.0776

Sup: 1.0628; 1.0611; 1.0585; 1.0500