Euro Plunges to 16-Month Low at $1.1310 Amid Dollar Strength

The EUR/USD pair has reached its lowest level since May 2025, falling to $1.1310 on Tuesday and recovering slightly to around $1.1360. This decline represents a loss of 2.5% for the euro in September, putting it on track for its strongest monthly advance against the dollar in 14 months.

The lower boundary of a long-term descending channel is providing support at this level, but touching the channel floor does not necessarily indicate a bullish trend. The pair's broader pattern remains downward, with lower highs and lower lows forming.

However, if the euro can hold above $1.1310, it may trigger a technical rebound towards $1.1400, followed by the more significant resistance region of $1.1450-$1.1500.