Original analysis by: Mohammed Shaker
Source: DailyForex – “EUR/USD Analysis: 28 October 2025”
EUR/USD Technical Analysis – 28 October 2025
By Mohammed Shaker | DailyForex
The EUR/USD currency pair experienced renewed bearish pressures toward the end of October, dragged lower by a rebound in the US dollar. Economic uncertainty in the Eurozone paired with positive US data supported the greenback, placing downward pressure on the euro. On October 27 and 28, the EUR/USD pair exhibited notable technical movements that may define its path going into early November.
Market Fundamentals Supporting USD Strength
– The resilience of the US economy compared to the Eurozone continues to support the dollar. Consumer confidence in the US has moderately improved, while Eurozone business sentiment has weakened due to persistent geopolitical risks and inflationary trends.
– Recent economic data from the US included stronger-than-expected GDP growth, which provided additional momentum to the US dollar.
– The Federal Reserve’s relatively hawkish stance compared to the European Central Bank (ECB) has made the dollar increasingly attractive to investors.
On the other hand, the impact of recent ECB statements shows increasing concern over stagnating growth and lackluster inflation momentum. This divergence in central bank policies continues to create a bearish trajectory for the EUR/USD in the medium term.
Technical Overview: EUR/USD Dynamics
As of the end of trading on October 27, 2025, EUR/USD was seen hovering around the 1.0530 level, sliding after an unsuccessful attempt to rebound above the 1.0600 threshold earlier in the week. Technically, the pair remains caught in a descending channel which reflects the prevailing bearish trend.
Key Technical Indicators:
– Moving Averages:
– The 50-day Simple Moving Average (SMA) is acting as a dynamic resistance and currently lies near the 1.0670 level.
– The 200-day SMA is positioned further above at the 1.0800 mark, emphasizing the long-term downtrend.
– RSI (Relative Strength Index):
– The Relative Strength Index remains below the neutral 50 level, indicating bearish momentum.
– Currently near the 43 mark, the RSI shows there is still room for further downward movement before reaching oversold territory.
– MACD Indicator:
– The MACD line remains below the signal line, reinforcing bearish technical confirmation.
– There is no current indication of a bullish crossover in the near term.
Support and Resistance Levels:
– Immediate Support Zones:
– 1.0520: This level served as a key support across mid-October and is now being tested again.
– 1.0455: A breach below 1.0520 may lead to a swift movement toward this level.
– 1.0400: Considered a psychological support level, critical in maintaining buyer interest.
– Resistance Zones:
– 1.0600: A recovery above this level could open up further gains, though with heavy resistance.
– 1.0670: Aligned with the 50-day SMA, this level acts as a formidable barrier.
– 1.0730: Represents a multi-week high and would be needed to confirm any trend reversal.
Short-Term Price Trends and Market Sentiment:
– The persistent lower highs and lower lows indicate that sellers maintain control.
– With traders closely watching US Federal Reserve commentary and ECB policy actions, any surprising announcements from either side could create volatility.
– Until such a catalyst manifests, market bias remains tilted toward the downside.
Chart Patterns and Potential Scenarios:
A descending triangle appears to be forming on the daily chart. This classic bearish pattern, characterized by descending resistance and a horizontal support base, points to a likely breakout lower if the base around the 1.0520 level fails to hold.
Scenario 1: Bearish Continuation
If the euro continues to break below support at 1.0520, the following
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