The EUR/USD pair saw renewed softness on Monday, slipping toward 1.1725 in early European hours. The pair is under pressure as the U.S. dollar retains strength amid lingering fears of a U.S. government funding deadlock and firm macro data. The euro is also being weighed down by cautious ECB rhetoric and mixed eurozone sentiment data as markets brace for the week’s schedule.
Technical Outlook: Key Levels in Focus
EUR/USD remains vulnerable to further downside unless a strong reversal emerges. On the upside, resistance is clustered near 1.1750–1.1765, with a more formidable barrier at 1.1800. To the downside, the next support zone lies around 1.1700, and a breach below that could target 1.1650 and perhaps the September lows. Momentum is modestly bearish: technical indicators point toward a weak trend, but not yet a runaway collapse.
Eurozone Confidence Rises Slightly
A flash estimate shows eurozone consumer confidence rose to –14.9 in September from –15.5 in August, an improvement of 0.6 points. (European Commission / DG ECFIN). While still deeply negative, this uptick could provide some support to the euro if confirmed in full data. However, the sentiment backdrop remains soft and eclipsed by global headwinds.
Outlook for EUR/USD
EUR/USD remains in a vulnerable position under 1.1750, with downside risk dominating the narrative. The modest surprise in eurozone consumer confidence may offer short-lived relief, but without stronger macro or policy drivers, the euro may continue to drift. Traders will look to upcoming U.S. data and fiscal developments for the next major move.
