The euro remains under pressure against the US dollar, with EUR/USD hovering near 1.0300, as investors react to ongoing economic uncertainty and diverging central bank policies. The pair continues to face downside risks, with a lack of bullish momentum preventing any meaningful recovery.
The US dollar held firm, supported by steady Treasury yields and market expectations that the Federal Reserve will maintain higher interest rates for longer. While some recent US economic data has shown signs of softening, traders remain cautious, limiting any significant losses in the greenback.
Meanwhile, Eurozone economic concerns persist, with weak growth indicators weighing on sentiment. The European Central Bank (ECB) has maintained a cautious tone, but with inflation cooling, expectations for further tightening have faded. This lack of policy support has kept the euro vulnerable, reinforcing the pair’s bearish outlook.
Technical indicators suggest EUR/USD remains in a downtrend, with 1.0300 acting as a critical support level. If selling pressure intensifies, a break below this threshold could open the door for further declines. On the upside, any attempt to recover would likely face resistance near 1.0350, making a sustained rebound difficult.
Looking ahead, traders will focus on upcoming US inflation data and ECB commentary, which could dictate the pair’s next move. A hotter-than-expected inflation print could strengthen the dollar, further pressuring EUR/USD, while dovish remarks from the ECB may accelerate the euro’s decline.
For now, EUR/USD remains bearish, with macro and technical factors keeping downward pressure intact. Unless a shift in sentiment occurs, the pair may continue to struggle below key resistance levels, with risks tilted toward further losses.
