EUR/USD Outlook

Source: Dukascopy Bank SA

Economic Calendar Analysis



EUR/USD Daily chart analysis

The EUR/USD daily chart displays an entrenched downtrend, with the pair trading around 1.12211 well below its declining 26-period SMA at 1.13903 following a steep drop throughout September and early October. After decisively breaking below former horizontal support at 1.1400, price action has stalled into small, indecisive daily candles directly above the recent 1.1180–1.1200 consolidation lows, while the RSI sits deeply oversold at 26.72. This oversold reading suggests immediate selling pressure is exhausted and hints at a potential relief bounce or stabilization toward the 1.1390–1.1400 resistance area (where the broken floor meets the declining moving average), though a failure to defend 1.1180 leaves the pair vulnerable to continuing lower toward the psychological 1.1000 support level.

Daily Chart



Weekly review

The weekly EUR/USD chart reflects an active bearish reversal following a multi-month distribution structure between 1.1400 and 1.1800 throughout 2026. After repeatedly failing to sustain gains above the major 1.1800 resistance line, the pair formed lower highs and broke down decisively beneath its 26-week Simple Moving Average (currently around 1.1537). The slope of the 26-week SMA has curled downward, confirming that medium-term momentum has rolled over in favor of sellers. Consecutive wide-range weekly candles closing near their lows further underscore strong institutional liquidation, driving the price down to its current intermediate support level around 1.1225. 

Looking ahead, the path of least resistance remains tilted to the downside, with the primary macro target sitting at the major 1.1000 horizontal demand shelf established during late 2024 and mid-2025. Given the extended nature of the recent descent, an oversold bounce or temporary consolidation around 1.1225 is plausible. However, any corrective rally toward the 1.1450–1.1537 zone—where former range support meets the declining 26 SMA—is poised to act as dynamic resistance, offering high-probability continuation zones for trend-following sellers rather than signaling a structural reversal.



EUR/USD chart

Weekly Chart





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