FX.co ★ EUR/USD

The EUR/USD currency pair has faced selling pressure for the third day in a row, recently touching new lows not seen since July 29. On Wednesday in the Asian session, it traded around 1.1425, indicating the downward trend remains in place. The US Dollar (USD) remains bullish due to the Fed’s hawkish outlook and rising geopolitical uncertainty. Meanwhile, the euro is weighed down by growing political risks in Germany, which largely outweigh the possibility of another ECB rate hike. As a result, these dynamics are likely to keep the pair under pressure, and the current decline may extend further. Technically, the break below the 100-day SMA support on the daily chart last week is a key factor for bearish players. Furthermore, current rates continue trading below several Fibonacci retracements, including 61.8% at 1.1474 and 50.0% at 1.1519. This setup reinforces the current negative mood, even though the RSI is at 29.7, suggesting mildly overstretched conditions. However, the MACD remains in negative territory, indicating further selling pressure. This means any recovery move will face obstacles near the 61.8% retracement at 1.1474. Further resistance levels include the 50.0% retracement at 1.1519 and the 100-day SMA at 1.1540. If buyers move higher, resistance may appear at thes the 38.2% retracement at 1.1563 and 23.6% at 1,.up to the cycle high at 1.1708. However, on the downside, support appears to kick in when the pair touches the 78.6% Fibonacci retracement level at 1.1410. This level is above the structural support at the swing low of 1.1329.