Insights 
VT 
The Euro might rise gradually and test 1.1680, but further increase beyond this level is improbable. Recent weakness has stabilised, and the Euro is likely to fluctuate between 1.1575 and 1.1720. In the past 24 hours, the Euro was expected to rise but lacked momentum; any advance was part of a higher range between 1.1575 and 1.1635. The US Dollar edged higher, ranging from 1.1600 to 1.1647. There is support at 1.1630, and a break below 1.1610 would indicate easing upward pressure.
In the 1-3 week outlook, a negative view on the Euro was noted early last week, with a decreasing chance of reaching 1.1490. Downward momentum is slowing, and unless the Euro drops below 1.1540 soon, surpassing 1.1645 is plausible and suggests stability. The Euro rose above 1.1645, reaching a recent high of 1.1647, reinforcing the stabilisation from last week’s weakness. The current stance is neutral, with an anticipated trading range between 1.1575 and 1.1720.
Market Observations And Insights
The FXStreet Insights Team compiles selected market observations from noted experts, providing additional insights from both internal and external analysts.
The weakness we saw in the Euro early last week appears to have stabilized, shifting our outlook to neutral. For now, we expect the EUR/USD to trade within a 1.1575 to 1.1720 channel. This suggests that strategies profiting from low volatility, such as selling strangles or iron condors with strikes outside this range, could be favorable.
This view is supported by the latest Eurozone Harmonised Index of Consumer Prices (HICP) data for September 2025, which showed inflation easing to 2.8%, aligning with market expectations. Furthermore, recent statements from both the European Central Bank and the Federal Reserve have signaled a pause in their rate-hiking cycles, removing a key driver of volatility. This monetary policy convergence reinforces the idea of a period of consolidation for the currency pair.
Sideways Market Action
In the immediate term, we see a potential for a gradual rise to test the 1.1680 level. Given the lack of strong upward momentum, selling call options with strike prices at or above the 1.1720 resistance level could be a prudent way to generate income. A break below 1.1610 would signal that this mild upward pressure has faded.
This type of sideways market action is not unusual; we saw a similar period of range-bound trading for several months back in 2023 after a significant policy shift from the central banks. Back then, implied volatility on EUR/USD options fell to multi-year lows, which consistently rewarded option sellers. This historical precedent suggests the current 1.1575 to 1.1720 range could hold for several weeks.
