Key Highlights
- EUR/USD declined heavily below 1.1320 and 1.1250.
- A major bearish trend line is forming with resistance at 1.1275 on the 4-hour chart.
- GBP/USD started a consolidation phase below 1.3280.
- USD/JPY could aim for a fresh increase if it closes above 159.00.
EUR/USD Technical Analysis
The Euro remained in a bearish zone below 1.1320 against the US Dollar. EUR/USD gained bearish momentum after it settled below 1.1300.
Looking at the 4-hour chart, the pair dropped below 1.1250 and 1.1200. It even tested 1.1165 and settled well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
It is now consolidating losses below the 23.6% Fib retracement level of the downward move from the 1.1380 swing high to the 1.1166 low. Immediate resistance could be 1.1250. There is also a major bearish trend line forming with resistance at 1.1275.
The first major resistance might be 1.1300. The next key resistance could be near 1.1320. A close above 1.1320 could result in a decent increase toward the 100 simple moving average (red, 4-hour) at 1.1420.
If there is another drop, the pair might find support near 1.1165. The first major support might be 1.1150. A close below 1.1150 might accelerate the decline. In the stated case, the pair might drop to 1.1080.
Looking at GBP/USD, the pair also saw a steady decline below 1.3320 and is now consolidating losses above the 1.3200 support.
Upcoming Key Economic Events:
- Eurozone Services PMI for Sep 2026 – Forecast 53.0, versus 53.0 previous.
- US S&P Global Manufacturing PMI for Sep 2026– Forecast 58.7, versus 58.7 previous.
- US ISM Services Index for Sep 2026 – Forecast 55.7, versus 55.4 previous.
