EUR/USD Price Forecast: More downside likely below 1.1160

The Euro (EUR) experienced a decline of 0.18%, settling near 1.1238 against the US Dollar (USD) during the Asian trading session on Wednesday. This pair has been experiencing selling pressure as the US Dollar gains ground following a corrective phase the day before. Currently, the US Dollar Index (DXY), which measures the strength of the Greenback against six significant currencies, is trading marginally higher than 102.00, having climbed 0.18% on the day.

The US Dollar Index saw a correction on Tuesday due to indications that the surge in US Treasury bond yields has reached a temporary standstill. However, the US Treasury Yields have since rebounded, surpassing the 5.3% threshold.

Looking ahead, the forthcoming Federal Open Market Committee (FOMC) minutes from the September policy meeting, to be released at 18:00 GMT, will be a key catalyst for the US Dollar. Meanwhile, on the Euro side, a worsening French fiscal crisis stemming from increasing debt, now amounting to 119% of Gross Domestic Product (GDP), is anticipated to maintain downward pressure on the major currency.

On the daily chart, EUR/USD is trading at 1.1238 and maintains a bearish outlook in the short term due to its position below the 20-day exponential moving average (EMA) at 1.1376. Price action has been influenced by a series of lower closes, while the Relative Strength Index (14) stands at 25, indicating oversold conditions that may temper the downside without fundamentally altering the bearish trend.

If the EUR/USD pair were to fall below the latest yearly low near 1.1160, the downside pressure could escalate.