EUR/USD Slips Below 1.1655 as Dollar Strength Extends

EUR/USD Breaks Lower as USD Momentum Stays Firm

EUR/USD is trading near 1.1653 after slipping below 1.1655, a move that confirms a double-top breakdown and keeps the near-term bias negative. The pair remains below the 20-day EMA at 1.1710, while the U.S. Dollar Index sits near 99.00, reflecting a stronger Greenback and broader pressure on the euro.

Why the Euro Is Under Pressure

The latest market tone is being driven by a stronger U.S. dollar and rising expectations that U.S. interest rates may stay elevated. Recent commentary also points to hotter-than-expected U.S. inflation data, while CME FedWatch now prices a higher chance of a December rate hike than it did a week earlier. For more context on policy expectations, see Fed cuts outlook, the Fed dot plot, and real yields.

At the same time, constructive headlines around U.S.-China relations could support risk sentiment, but they have not been enough to offset the dollar’s advantage. For traders following forex trading or using a Forex Trading Bot, the key near-term question is whether EUR/USD can regain technical footing above 1.1710.

Technical Levels to Watch

Support and downside risk

The immediate bearish signal comes from the break below 1.1655. If that level stays broken, the next support is seen at 1.1589, followed by 1.1505. The RSI near 44 also suggests downside pressure remains in play rather than being exhausted.

Resistance and recovery trigger

To ease the current bearish setup, EUR/USD would need to reclaim the 20-day EMA near 1.1710. A sustained move back above that area could open the way toward 1.1800, especially if the dollar softens or broader risk appetite improves.

Macro Events Later Today

Two medium-volatility U.S. releases may influence dollar sentiment later in the session: the NY Empire State Manufacturing Index and Industrial Production. If either report surprises to the upside, it could reinforce the current USD bid and keep EUR/USD under pressure. Traders may also want to review FX liquidity before trading around the release window.

What Traders Should Focus On Next

The current setup is short-term bearish, but it is still data-sensitive. A softer dollar, better risk sentiment, or a firm rebound above 1.1710 would weaken the downside case. Until then, EUR/USD remains vulnerable to further losses toward the lower support band.

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