Title: EUR/USD Evening Analysis – October 10, 2025
Original article by Economies.com
Overview
The EUR/USD pair extended its downward movement on October 10, 2025, as reflected in the evening technical update provided by Economies.com. Analysts noted that the euro faced increased pressure against the US dollar, with the pair continuing its bearish trajectory. This persistent downside movement aligns with the prevailing trend, remaining under the negative influence of key technical indicators.
Building on this movement, the pair broke through support levels despite brief attempts to consolidate. The breach reinforced bearish momentum, suggesting a likely continuation of the trend in the near term. Below is an in-depth analysis of the price behavior, key technical indicators, trading strategies, and forecast for the EUR/USD currency pair.
Technical Summary
The technical landscape for EUR/USD showed the following developments on October 10, 2025:
– The pair traded below the 50-day and the 100-day Exponential Moving Averages (EMA), confirming prevailing bearish sentiment.
– A clear break below the 1.0550 support level indicated sellers remain in control.
– The pair maintained price action within a downtrend channel formed over the past several trading sessions.
– Relative Strength Index (RSI) held at oversold territory, hovering near 30, but signaled no immediate turnaround.
– Stochastic Oscillator showed bearish crossover, supporting further near-term declines.
These indicators collectively confirmed the resumption of bearish control in the market, with minimal short-term evidence suggesting a reversal.
Price Action and Candlestick Behavior
During the intraday session, EUR/USD:
– Opened at around 1.0580 and moved lower throughout the European and North American trading periods.
– Faltered near the psychological level of 1.0500, briefly holding that support, but failed to mount a sustained recovery.
– Formed bearish candlesticks on the hourly and 4-hour charts, with longer upper wicks indicating inability to hold gains.
– Continuation patterns, including bearish flags and descending triangles, surfaced, affirming downward continuation.
Such formations and price structures suggested sellers aggressively defended resistance zones.
Support and Resistance Levels
The following levels proved important on October 10:
Support:
– 1.0500: Psychological support and recent intraday bottom
– 1.0470: Historic swing low dating back to March 2023
– 1.0435: Fibonacci extension level
– 1.0400: Round number that may offer psychological support
Resistance:
– 1.0580: Recent intraday high and short-term resistance
– 1.0620: 50-EMA on the 4-hour chart
– 1.0670: Key horizontal resistance from late September
– 1.0730: Upper bound of the descending channel
The active chart positioning implies considerable resistance near 1.0600 while bearish momentum seeks new support levels.
Fundamental Context
Several fundamental drivers defined the EUR/USD trajectory on October 10, 2025:
– Stronger-than-expected U.S. jobless claims reinforced the dollar’s strength.
– Federal Reserve speakers remained hawkish, with some policymakers signaling that rates may remain elevated longer than anticipated.
– Eurozone industrial data came weaker than forecasts, hinting at continued economic stagnation.
– Political concerns in several euro-area nations sparked risk aversion toward the euro.
The divergence in interest rate policy expectations between the European Central Bank (ECB) and the Federal Reserve intensified downward pressure.
Short-Term Outlook
Given current market dynamics and technical setup, the EUR/USD pair is expected to:
– Remain within a bearish trend channel as long as prices hold below 1.0620.
– Possibly test lower support levels near 1.0470 and even 1.0435 if 1.0500 fails to hold
Read more on EUR/USD trading.