EUR/USD tests key support in bid for upside
EUR/USD halted last week’s downside pressure near the 1.1265 support zone, which previously paved the way to the three-and-a-half-year high of 1.1572 reached on April 21.
The long-term descending trendline from the May 2014 peak, along with the 20-day simple moving average (SMA), are currently keeping the price above 1.1300. However, aside from the stochastic oscillator – currently forming a double bottom pattern near its oversold threshold of 20 – other declining technical indicators cast doubt on the potential for a sustained rebound.
Nevertheless, only a bearish extension below the 1.1175–1.1200 area and a break below the bullish channel would significantly weaken the short-term outlook. If that scenario materializes, the pair could correct sharply toward the 1.0980–1.1015 support zone and the 50-day SMA. A break below this area could lead to a deeper decline toward 1.0780-1.0800, where the 200-day SMA and a tentative support trendline from January intersect.
Should the bulls regain momentum near the 20-day SMA, the price could initially pause around the 1.1420 resistance level before challenging April’s resistance zone at 1.1513–1.1572. A decisive close above this region could establish a new higher high between 1.1635 and 1.1700. Further up, the bulls could head for the 161.8% Fibonacci extension of the September-January downtrend seen near 1.1835.
In brief, EUR/USD is trading near a key support zone, but technical indicators suggest that a clear confirmation is needed before buyers step in.
.jpg "EUR/USD tests key support in bid for upside")
Why is EURUSD falling even though the Fed has softened its rhetoric?
France’s Political Turmoil and Trump’s Grip on the Fed Increase FX Volatility
A Tale of Two Currencies: USD Finds Footing as EUR and AUD Face Domestic Headwinds | 27th August 2025
ATFX Market Outlook 26th August 2025
US 30, EURUSD, USDJPY
Euro Rallies Against Dollar After Powell's Cautious Jackson Hole Speech
EURUSD remains rangebound after pullback from four-week high
