Key Moments
- EUR/USD is trading around 1.1380-1.1375 after testing its weakest level since July 28.
- A pause in the US Dollar’s recent advance and oversold technical readings are limiting immediate downside.
- Technical structure still favors further EUR/USD weakness, with key support seen near 1.1325 and 1.1244.
EUR/USD Holds Near Lows as Traders Await Trump-Xi Summit
The EUR/USD pair is on track for a third consecutive daily decline, after slipping to its lowest level since July 28 during the Asian session on Thursday. The move lower has not extended meaningfully so far, with the pair stabilizing and changing hands around the 1.1380-1.1375 band, as sellers take a more cautious stance ahead of the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping.
The US Dollar (USD) has paused following a strong rally in the previous session that drove it to a nearly two-month high, offering some near-term support to EUR/USD. Even so, expectations for further interest rate increases from the US Federal Reserve (Fed), together with ongoing geopolitical concerns, continue to underpin the USD. At the same time, the euro is being weighed down by political uncertainty in Germany, reinforcing the notion that the prevailing bias for the currency pair remains tilted to the downside.
Technical Picture: Oversold but Still Bearish
From a technical perspective, momentum indicators point to a market that is stretched but not necessarily at a durable inflection point. The daily Relative Strength Index (14) has slid to 25.47, reflecting oversold conditions that may temper the pace of additional losses, yet it does not clearly signal a lasting bottom for EUR/USD.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains below the zero line, with a negative reading near -0.0025, signaling that bearish momentum is still in place. While this backdrop allows for the possibility of short-lived corrective rebounds, such moves are seen as vulnerable to quickly fading in the vicinity of the 1.1420 supply area.
| Indicator / Level | Reading / Zone | Implication |
|---|---|---|
| Current spot range | 1.1380-1.1375 | Near two-month low, little net change on the day |
| RSI (14), daily | 25.47 | Oversold conditions, potential slowdown in downside momentum |
| MACD | Below zero, around -0.0025 | Confirms ongoing bearish momentum |
| Immediate resistance zone | Near 1.1420-1.1425 | Area where rebounds may stall and trend reassessment may occur |
| One-year low support | Around 1.1325 (June low) | First notable downside support area |
| Psychological support | 1.1300 | Break could open door to deeper losses |
| Fibonacci expansion support | 61.8% at 1.1244 | Next technical target if 1.1300 breaks |
Key Levels: Support and Resistance in Focus
On the downside, the one-year low near 1.1325, which was reached in June, is the first notable support area that could provide some stabilization ahead of the 1.1300 handle. A sustained move below 1.1300 would expose the next key technical level at the 61.8% Fibonacci expansion, located at 1.1244.
At the same time, the oversold RSI and the negative MACD configuration are better viewed as momentum-based reference points rather than precise price floors. On the topside, market participants are likely to regard any recovery toward 1.1425 as a chance to re-evaluate the strength and durability of the broader downtrend in EUR/USD.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
