News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
EUR/USD Slides Toward Four-Month Lows as Dollar Finds Support in Cautious Risk Mood
Economic
Summary:
EUR/USD drifts toward four-month lows near 1.1660 as mild risk aversion underpins the US Dollar, while improving Eurozone data fails to translate into sustained Euro demand.
Sell
CLOSEDEURUSD
End Time
1.16600
Entry Price
1.16150
TP
1.17500
SL
1.16360 -0.00220 -0.19%
159
Points
Profit
1.16150
TP
1.16441
CLOSING
1.16600
Entry Price
1.17500
SL
The euro extended its decline against the US Dollar on Thursday, with EUR/USD trading around 1.1673 at the time of writing and edging dangerously close to the 1.1660 region, a level that marks its weakest territory in nearly four months. The pair’s inability to find meaningful support highlights a market environment where modest risk aversion continues to favor the Greenback, while positive surprises from the Eurozone economy have so far proven insufficient to reverse bearish sentiment toward the single currency.
From a macro perspective, the US Dollar is benefiting from its traditional safe-haven appeal, even in the absence of clearly hawkish signals from the Federal Reserve. Investors remain cautious ahead of key US labor market data, preferring to maintain Dollar exposure while volatility remains compressed and directional conviction limited. This has kept EUR/USD under steady pressure, despite data that, on paper, should have offered some relief to the Euro.
In the Eurozone, the latest unemployment figures surprised to the downside, signaling a healthier labor market than previously expected. This was reinforced by a series of marginally stronger economic sentiment indicators, which pointed to tentative stabilization across parts of the bloc. Under normal circumstances, such data would help the Euro regain ground. However, the market reaction has been muted, suggesting that traders remain unconvinced about the sustainability of the Eurozone recovery, particularly against the backdrop of sluggish growth momentum and lingering concerns over future monetary policy divergence with the United States.
Across the Atlantic, Wednesday’s batch of US economic releases painted a mixed but ultimately Dollar-supportive picture. Employment-related indicators confirmed that the US labor market is losing momentum, with signs of stagnation rather than outright deterioration. While this could argue for a more cautious Federal Reserve, the impact on the Dollar has been offset by stronger-than-expected activity in the services sector. The upbeat services data hinted at a notable rebound in economic activity toward the end of the fourth quarter of 2025, reinforcing the narrative that the US economy remains more resilient than many of its peers.
Crucially, these mixed signals have done little to clarify the Fed’s near-term policy path. As a result, markets are reluctant to price in aggressive easing, keeping US yields relatively supported and limiting downside pressure on the Dollar. This uncertainty has translated into range-bound trading conditions, but with a clear downside bias for EUR/USD.
Looking ahead, attention on Thursday turns to weekly Jobless Claims and Nonfarm Productivity figures from the US. While these releases could provide short-term direction, their impact is likely to be limited, as investors are expected to remain largely on the sidelines ahead of Friday’s Nonfarm Payrolls (NFP) report. The NFP release is widely seen as the next major catalyst that could reshape expectations around Fed policy and inject fresh volatility into the FX market.
Technical Analysis
From a technical standpoint, the short-term picture continues to favor the bears. EUR/USD has declined in recent intraday trading, remaining firmly below the 50-period Exponential Moving Average (EMA50). This reinforces the prevailing bearish corrective structure and confirms that downside pressure remains dominant, particularly as the pair continues to respect a descending trendline drawn from December highs.
That said, the downside momentum is not particularly aggressive. Relative strength indicators are beginning to flash early warning signs for bears. The Relative Strength Index (RSI) is holding at oversold levels, suggesting that selling pressure may be losing intensity and that a temporary pause or shallow corrective rebound cannot be ruled out.
On the 4-hour chart, indicators remain mildly negative but lack strong conviction. The MACD histogram is hovering around the zero line, signaling an absence of clear momentum, while the RSI has flattened below the 40 level, consistent with a weak but stabilizing bearish trend.
The broader bearish move from the December high at 1.1808 remains intact. Immediate support at 1.1660 has so far managed to contain further losses. A decisive break below this zone would expose the January 5 low at 1.1659, which, if breached, could open the door toward the December 8–9 lows near 1.1615.
TRADE RECOMMENDATION
SELL EURUSD
ENTRY PRICE: 1.1660
STOP LOSS: 1.1750
TAKE PROFIT: 1.1615
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.