The Euro (EUR) could potentially test the 1.1580 mark, though a prolonged drop below this point is unlikely. According to analysts from UOB Group, the Euro is expected to trade with a downward bias over the long term, possibly retesting the 1.1540 level.<\/p>\n
In the short term, the previous trading session saw the Euro drop to a low of 1.1597, contradicting earlier predictions that it would not fall significantly below 1.1625. For today, it might test 1.1580, yet a sustained decline beyond this remains improbable. Resistance levels for the Euro are noted at 1.1620 and 1.1640.<\/p>\n
Looking at the next one to three weeks, earlier predictions suggested a range-bound movement between 1.1580 and 1.1690. However, the Euro unexpectedly fell to 1.1597 in the late New York session. The expectation is for the Euro to maintain a downward trajectory, potentially revisiting last week’s low of 1.1540, as long as the 1.1660 resistance level is not surpassed.<\/p>\n
Given the building downward momentum, we see the EUR\/USD pair trading with a downward bias in the coming weeks. The expectation is for a potential retest of the 1.1540 support level. This view will hold as long as the price remains below the strong resistance at 1.1660.<\/p>\n
This bearish outlook is strengthened by recent economic data divergence. Eurostat’s flash estimate for September 2025 showed Eurozone inflation unexpectedly dipping to 1.9%, while last week’s US CPI figures remained stubbornly above target at 3.5%. This reinforces the narrative of a dovish European Central Bank contrasting with a hawkish Federal Reserve.<\/p>\n
The dynamic is reminiscent of what we observed back in 2022, when aggressive Fed rate hikes sent the dollar soaring against the euro. With recent commentary from Fed officials suggesting a “higher for longer” policy stance to combat inflation, conditions appear ripe for a similar, though less extreme, trend. Therefore, the path of least resistance for the EUR\/USD appears to be downwards.<\/p>\n
For traders, this suggests positioning for further declines using options. Buying put options with a strike price at or below 1.1580 could be a straightforward way to capitalize on the expected move towards 1.1540. This strategy allows for a defined risk, limited to the premium paid for the option.<\/p>\n
Alternatively, a bear put spread could be considered to lower the initial cost. This would involve buying a put option, for instance at 1.1580, and simultaneously selling another put at a lower strike, like 1.1540. The key is to watch the 1.1660 resistance level, as a break above it would invalidate this bearish setup.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Euro may test 1.1580, with downward bias; sustained drop unlikely unless resistance at 1.1660 is broken.<\/p>\n","protected":false},"author":62,"featured_media":16966,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-32894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/32894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=32894"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/32894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16966"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=32894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=32894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=32894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}