EUR/USD Sinks Below Key Support Levels
The EUR/USD currency pair has experienced a sharp decline, dropping below key support levels at 1.1320 and 1.1250. The downward momentum has been significant, with the pair testing as low as 1.1165 and settling below both the 100 and 200 simple moving averages on the 4-hour chart.
A major bearish trend line has formed, with resistance now situated at 1.1275. The pair is currently consolidating losses below the 23.6% Fib retracement level of the recent downward move from 1.1380 to 1.1166. Immediate resistance levels are identified at 1.1250, 1.1300, and 1.1320, with a close above 1.1320 potentially leading to a rise toward the 100 simple moving average at 1.1420.
On the downside, support levels to watch include 1.1165, 1.1150, and a potential drop to 1.1080 if the pair closes below 1.1150. Meanwhile, GBP/USD has also seen a decline below 1.3320 and is now consolidating above the 1.3200 support level.
Looking ahead, key economic events include the Eurozone Services PMI for September 2026, forecasted at 53.0, and the US S&P Global Manufacturing PMI for the same month, also forecasted at 58.7. Additionally, the US ISM Services Index for September 2026 is expected to come in at 55.7.