EUR/USD eased further on Monday and is pressuring a new 2026 low, driven by a stronger dollar and higher crude oil. Markets are watching US consumer price data due Wednesday, which could strengthen bets on a Fed tightening cycle.
EUR/USD eased further on Monday, pressuring a new 2026 low, which is also the floor of a one-week consolidation. A stronger dollar and crude oil drove the move.
Near-term risk is expected to remain shifted lower as markets anticipate a further rise in US consumer prices, with data due on Wednesday. A further rise would boost bets for the Fed entering a tightening cycle, even though wide expectations point to the central bank staying on hold at its Oct 28 policy meeting.
Daily studies maintain a strong bearish structure. An oversold RSI may continue to produce headwinds, but limited upticks have so far been capped under the falling 10DMA, the initial resistance, which suggests bears continue to hold their grip.
Immediate targets sit at 1.1130, the 50% retracement of the 1.0177/1.2082 uptrend, and 1.1100, the 200WMA and round-figure support. A violation of those levels would unmask more significant psychological support at 1.10.
Resistance levels stand at 1.1215, 1.1242, 1.1276 and 1.1320, while support sits at 1.1160, 1.1130, 1.1100 and 1.1065.
Source: ActionForex
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