EUR/USD Price Forecast: Trades below 1.1400, near two-month low ahead of Trump-Xi summit
The EUR/USD pair drifts lower for the third straight day, hitting a fresh low since July 28 during the Asian session on Thursday, though it lacks follow-through.
The EUR/USD currency pair is currently trading below 1.1400, near its two-month low, ahead of the upcoming Trump-Xi summit. During the Asian session on Thursday, the spot price hovered around 1.1380-1.1375, with no significant follow-through. The US Dollar (USD) has taken a breather after a strong move up to a nearly two-month high the previous day, providing some support to the EUR/USD pair.
However, rising expectations for further Federal Reserve (Fed) rate hikes and geopolitical uncertainties continue to favor USD bulls. Political instability in Germany is also negatively impacting the shared currency, suggesting that the EUR/USD pair may continue to trend downwards. Technical indicators such as the 14-day Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) show oversold conditions and bearish momentum, respectively, although the latter still carries a risk of short-term corrective rebounds.
The one-year low of the EUR/USD pair, around 1.1325, could provide some support, but a fall below 1.1300 may push the pair to the 61.8% Fibonacci expansion level of 1.1244.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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