EURUSD could see further downside potentialFundamental:
The euro slipped as mixed ECB signals and political jitters pressured sentiment. ECB President Lagarde reiterated that borrowing costs will remain restrictive 'as long as needed,' even as inflation eases and economic activity stabilizes.
Renewed political tensions in France and soft German industrial data also weighed on the euro, though stronger services PMIs offered a modest offset. At the same time, the dollar held firm after a hotter US CPI print reduced the likelihood of near-term Fed rate cuts, keeping EURUSD near a three-week low.
Technical:
EURUSD retreated below the resistance at 1.1800 and within the ascending channel. If the price extends its decline, it could approach the support at 1.1450. Conversely, a break above the resistance at 1.1800 could prompt a further rise toward the resistance at 1.1920.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness
