EUR/USD slides below key moving averages as bearish momentum targets 1.1400 support

by VT Markets
/
Sep 18, 2026

EUR/USD is under renewed pressure after sliding below key technical levels. On Monday, 14 Sep 2026, the pair broke beneath the 55-day EMA around 1.1555, then extended losses the following day by dropping through the lower edge of the daily Ichimoku cloud near 1.1490. The move has left the 21-day EMA close to crossing below the 55-day EMA, a bearish configuration that points to strengthening downside momentum.

Attention is now on support at 1.1400; a break would expose the July low at 1.1353 and then the June low at 1.1324. On the topside, resistance is clustered in the 1.1555–1.1565 zone, with another cap near 1.1625. The piece was produced using an Artificial Intelligence tool and reviewed by an editor.

Bearish Trading Strategies for EUR/USD

We believe derivative traders should prepare for a sustained downward move in the EUR/USD pair over the coming weeks by focusing on bearish strategies. The recent breakdown below the 55-day exponential moving average (EMA) at 1.1555 and the daily Ichimoku cloud at 1.1490 signals that the path of least resistance is firmly to the downside. We recommend utilizing bear put spreads or shorting futures contracts to capitalize on this growing bearish momentum.

Technical and Fundamental Drivers Supporting Further Weakness

Our outlook is strongly supported by the imminent bearish cross of the 21-day EMA below the 55-day EMA. Historically, similar technical crossovers have led to multi-week declines in the exchange rate, making passive holding risky. In past market cycles where this specific moving average crossover occurred, the euro suffered average depreciations of 2% to 3.5% over the subsequent month.

This technical weakness aligns with recent macroeconomic data showing a widening growth divergence between the US and the Eurozone. While Eurozone GDP growth sputtered at a meager 0.2% last quarter, US retail sales surprised to the upside with a 0.4% increase, reinforcing the Federal Reserve’s stronger economic stance. This interest rate differential continues to pull capital away from the euro and into the US dollar.

For option traders, we suggest targeting downside strikes near the immediate support level of 1.1400, followed by 1.1353. If the spot price breaks below 1.1353, the next major downside target rests at the June low of 1.1324. To manage risk, protective buy-stop orders on short positions should be placed just above the key resistance zone of 1.1555 to 1.1565.

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