EURUSD Dips to New Low Since May 2025

Market Overview

The EURUSD currency pair has recently dipped below the previous week's low of 1.1160, reaching a new low of 1.1155, marking its lowest level since May 2025. As of the latest update, the pair is trading around 1.1159.

Technical Analysis

The selling pressure began earlier in the day when the price rally stalled at 1.1217, which coincided with the falling 100-hour moving average. This technical barrier prevented buyers from gaining momentum, allowing sellers to take control and push the price lower.

Key Levels to Watch

The next significant target on the downside is 1.11296, which represents the 50% midpoint of the rally from the January 2025 low to the January 2026 high. Additionally, a swing low from mid-May is near this level, making it a critical area for potential support.

For beginner traders, the convergence of these two technical reference points indicates a potential area where buyers might attempt to establish support and manage their risk. A break below this level could lead to further declines towards 1.1060, the May 2025 low, with limited support in between.

Outlook for Buyers

For buyers to regain confidence, a move back above the falling 100-hour moving average, currently around 1.12056, is essential. This would alleviate some immediate downside pressure. However, buyers would still need to overcome the falling 200-hour moving average, located near 1.12308, to signal a more substantial recovery.

It is noteworthy that the price has not traded above the 200-hour moving average since September 10, when it was near 1.1610, highlighting the persistent selling pressure in the market.

Conclusion

Currently, the technical indicators suggest a bearish sentiment in the EURUSD market. As long as the price remains below the 100-hour moving average, sellers will maintain control. A reclaim of this level could provide buyers with a foothold for a potential recovery, but the 200-hour moving average will pose a significant challenge.