EUR – Euro Stabilizing Modestly but Still Capped Below 1.15

The dollar index closed lower on Friday after briefly touching a near-two-month high of 100.56. The Fed's 25 bp hike last week and market expectations of a further October increase underpinned the dollar and weighed on the euro. EUR/USD traded under pressure for most of the week before finding modest support on Friday, though it remains capped below the 1.15 handle.

Technically, the pair has tested lower levels several times since August yet managed to hold above 1.15 on prior occasions. Continued trading below 1.15 keeps the short-term bias tilted toward further downside probes, with support seen at 1.1450 and 1.1350 and key levels at 1.13 and ultimately 1.12. Resistance lies at the 100-day moving average 1.1550, followed by 1.1650 and 1.17, with the next major target at 1.18.

Forecast range:
Resistance: 1.1500 – 1.1550* – 1.1650 – 1.1700 – 1.1800  
Support: 1.1450 – 1.1350 – 1.1300* – 1.1200

Any questions? contact our professional analysis team