EURUSD – Sharp downtrend continues, hitting a new multi-month low

EURUSD opened the week with a negative tone, dropping 0.7% by early US trading on Monday, following a 0.8% decline on Friday, marking a total loss of 2.7% since Trump’s victory announcement on Wednesday.

The euro also posted a weekly loss of 1.8% against the dollar, with near-term movement pressured by a large bearish candlestick and the formation of a bearish engulfing pattern on the weekly chart.

The renewed strength of the US dollar pushed the euro to a six-month low on Monday, as the steep downtrend (bearish leg from 1.0936, Nov 5 lower peak) targets key mid-term support at 1.0601, the 2024 low recorded on April 16.

Bearish daily technical indicators further align with euro-negative fundamentals, driven by optimism about Trump’s policies to boost economic growth and concerns over potential tariffs on EU imports, though limited profit-taking could spark some correction.

The broken 76.4% Fibonacci level at 1.0745 should ideally act as a cap, with any extended upticks likely to stall under the broken psychological 1.08 level, now acting as strong resistance. This keeps the broader bearish outlook intact and presents better selling opportunities.

Res: 1.0682; 1.0745;1.0761; 1.0800
Sup: 1.0601; 1.0516; 1.0495; 1.0448