EUR/USD Forex Signal: 29 October 2025
Original Author: Adam Lemon
Source: DailyForex.com
Market Overview:
The EUR/USD pair showed a shift toward bearish momentum on October 29, 2025, as traders digested a combination of mixed macroeconomic data out of the eurozone and a stronger-than-expected performance from the U.S. dollar. This shift followed a technical pullback from overhead resistance levels, suggesting sellers are defending key zones in anticipation of upcoming economic events.
On Tuesday, October 28, the EUR/USD moved modestly lower after failing to hold gains near the 1.0700 level. Despite some bullish sentiment earlier in the week from dovish expectations around the Federal Reserve’s policy stance, buyers were met with strong resistance as the Greenback regained strength across multiple currency pairs. Mounting geopolitical uncertainty and cautious investor sentiment also contributed to renewed demand for the dollar as a safe-haven asset.
Technical analysis now indicates a fresh downward bias in the EUR/USD pair, with key support levels being tested, and near-term resistance areas remaining intact. Momentum indicators also suggest weakening bullish influence, which may open the door for further declines in the session ahead.
Current Market Conditions:
As of early trading on October 29, 2025, the EUR/USD pair is trading moderately lower near the 1.0570 region, after losing ground for much of the overnight session. The pair has struggled to break out of a consolidative phase seen over the past few trading days.
Important market factors contributing to the recent move include:
– A resurgence in U.S. dollar strength, driven by upbeat economic indicators and improving risk sentiment.
– A hawkish tone from certain Federal Reserve officials, pushing back on the market’s dovish rate expectations.
– Weakness in German manufacturing and eurozone retail sales data, underscoring economic divergence between the U.S. and Europe.
– Continued geopolitical tensions and risk-off moves supporting the dollar’s safe-haven appeal.
Market sentiment remains fragile ahead of upcoming high-impact events, including the FOMC policy meeting and eurozone inflation reports, both of which could space significant volatility into the EUR/USD direction in coming days.
Recent Price Action and Technical Setup:
On the technical chart, the EUR/USD continues to form lower highs and lower lows, suggesting the pair is in a short-term downtrend. The downside move emerged after the bulls failed to capitalize on support near the aforementioned 1.0700 round figure, which coincides with the 50-day Exponential Moving Average (EMA).
Here’s a breakdown of the key technical elements:
– Price fell below the 20-day SMA and is trading near the 1.0570–1.0585 range, which now acts as minor intraday support.
– The 1.0600 psychological level has turned into immediate resistance.
– RSI (Relative Strength Index) is below 50, confirming weakening momentum on the upside.
– MACD (Moving Average Convergence Divergence) shows a bearish crossover, adding to downside convictions.
– The daily chart suggests room for further decline toward the critical support at 1.0520, with next targets seen at 1.0485.
With the market holding below current trendlines and moving averages, the short-term picture favors the bears unless a significant bullish catalyst emerges.
Key Technical Levels:
Support levels:
– 1.0520 – Short-term swing low and horizontal support zone.
– 1.0485 – Previous demand zone from early October.
– 1.0450 – Lower trendline projection and key long-term support area.
Resistance levels:
– 1.0600 – Psychological barrier and convergence point with 20-period SMA.
– 1.0640 – Intraday resistance and previous short-term top.
– 1.0700 – Longer-term resistance and 50-day EMA level.
These levels should be watched closely during the day’s trading as they represent potential pivot areas or breakout points depending on upcoming
Read more on EUR/USD trading.