EUR/USD Plummets to One-Month Low as Policy Gap Widens

The EUR/USD pair has extended its losing streak to four straight days after falling 0.11% on Tuesday to 1.1536, a one-month low for the currency.

This decline follows the European Central Bank's (ECB) rate hike last Thursday and is attributed to the widening policy gap between the ECB and the Federal Reserve (Fed), with the Fed expected to raise its target range by 25 basis points to 3.75% to 4.00% on Wednesday.

The Eurozone ZEW sentiment index fell to 25.8 in September, missing expectations of a rise to 39.9, further weighing down the euro.

A clean break below the support level at 1.1533 would open the door to a target at 1.1491, according to technical analysis.