EURUSD Forecast: Euro Hits 17-Month Low as US Dollar Strengthens

EURUSD hit a 17-month low

On Monday, EURUSD continued falling. It hit 1.1152 for some time, the lowest level since May 2025.

There are upward risks on the inflation, the ECB said

Members unanimously believed that the duration of energy shock is longer than expected, and there are upward risks on inflation, according to the September monetary policy meeting minutes from the ECB. In addition, all of them supported the ECB increasing the interest rate by 25 basis points.

Long-term rise of the interest rate may significantly curb economic growth and inflation; therefore, we will take it into account while making interest rate decisions, the ECB stressed.

The USDX reached an 18-month high

On Monday, the USDX continued rising in recent days, and reached an 18-month high. It ended up 0.35% at 102.58.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, EURUSD was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that EURUSD will decline further. Investors should focus on whether EURUSD will break through the support at 1.110. It will decline with potential support at 1.106 if it breaks below 1.110.

4-hour chart

On the 4-hour chart, EURUSD was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether EURUSD will break through the resistance at 1.119. It will decline if it rebounds but is capped at 1.119.

Key resistance: 1.119,1.124

Key support: 1.110,1.106

Generally speaking, the bearish market trend prevailed in the short term. Investors could sell as EURUSD rebounds during the day.