EUR/USD drew fresh demand on Wednesday as US midterm election results unsettled the US Dollar, lifting the pair back above 1.1200 after last week’s dip to 1.1104, its lowest since May 2025. It was trading near 1.1257, up more than 0.50% on the day. On the daily chart, price action points to a potential double bottom around 1.1100, with the rebound probing a neckline zone at 1.1250–1.1270. The pair has also moved above the 21-day Simple Moving Average at 1.1196, though it remains below the 100-day and 200-day SMAs.
Technical Indicators and Chart Patterns
Momentum indicators have firmed, with RSI (14) near 52 and MACD turning positive above its signal line, while a broader reversal is still unconfirmed under longer-term averages. A sustained break through the neckline would validate the pattern and shift focus to 1.1350, followed by the 100-day SMA at 1.1421 and the 200-day SMA at 1.1548. Initial support sits at 1.1200 alongside the 21-day SMA; below that, the 1.1100 base becomes central, and a sustained move under it would negate the setup.
Eurozone Fundamentals and Market Share
In currency markets, the Euro accounted for 31% of foreign exchange transactions in 2022, with average daily turnover above $2.2tn, and EUR/USD represents an estimated 30% of all trades. The ECB sets policy across the Eurozone and targets inflation of 2%, with Governing Council meetings held eight times a year, and four large economies account for 75% of euro-area output.
