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EUR/USD Struggles To Break Free From Its Bearish Spell

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Aayush Jindal

Key Highlights

  • EUR/USD started a fresh decline and revisited 1.1110.
  • A bearish trend line is forming with resistance at 1.1225 on the 4-hour chart.
  • Gold extended losses and traded below $3,920.
  • USD/JPY is still struggling to clear the 158.00 and 159.00 resistance levels.

EUR/USD Technical Analysis

The Euro failed to settle above 1.1265 against the US Dollar. EUR/USD trimmed gains and traded below the 1.1220 support zone.

Looking at the 4-hour chart, the pair settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). It even revisited the 1.1110 zone. A low was formed at 1.1104, and the pair started a minor recovery wave.

There was a move above the 50% Fib retracement level of the downward move from the 1.1256 swing high to the 1.1104 low. However, the bears are active near the 1.1200 resistance.

The first major resistance might still be 1.1220. There is also a bearish trend line forming with resistance at 1.1225. A close above 1.1225 could start a steady increase. In the stated case, the pair might even surpass 1.1260.

If there is another decline, the pair might find support near 1.1140. The first major support could be 1.1100. A close below 1.1100 might accelerate the decline. In the stated case, the pair might drop to 1.1040. The main support could be 1.1000, below which the bears may gain strength for a sustained downward move.

Looking at Gold, there was a steady decline, and the bears were able to push the price below the $3,950 support zone.

Upcoming Key Economic Events:

  • Eurozone Manufacturing PMI for Oct 2026 – Forecast 52.4, versus 52.4 previous.
  • UK Manufacturing PMI for Oct 2026 – Forecast 52.8, versus 52.8 previous.
  • US S&P Global Manufacturing PMI for Oct 2026 – Forecast 56.0, versus 56.0 previous.
  • US ISM Manufacturing PMI for Oct 2026 – Forecast 54.7, versus 54.5 previous.
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