EUR/USD Technical Analysis – November 27, 2025
Original Analysis by: Mahmoud Abdallah, DailyForex.com
Adapted and Expanded Version
Overview
The EUR/USD pair experienced a notable drop during last week’s trading sessions, steered largely by a strengthening U.S. dollar and a cautious market sentiment toward the Eurozone’s economic outlook. Fundamental and technical factors played a significant role in guiding the currency pair’s bearish move. As we approach the close of November 2025, investors and traders are closely watching for key resistance and support levels that could define the short-to-medium term trajectory of the pair.
The Euro lost ground against a broadly stronger U.S. dollar, which appreciated thanks to firm U.S. economic indicators, hawkish tones from Federal Reserve policymakers, and global risk aversion that bolstered demand for safe-haven assets. Europe, on the other hand, continues to struggle with slowing economic growth, persistently high inflation in some member states, and political friction that is weighing on investor sentiment.
Technical Analysis
Price Movement and Trend
– The EUR/USD pair reached intraday lows near the 1.0939 mark at the end of last week’s trading.
– This move represents a significant pullback after the pair reached highs close to the psychological 1.1000 barrier.
– Despite occasional rallies, the price has failed to sustain momentum above 1.1000, indicating bearish pressure remains dominant in the current trading environment.
– The pair remains in a broadly ranging zone in the medium term, with a bearish tilt emerging in recent sessions.
Key Support Levels
Three important support levels to monitor over the coming days include:
– 1.0930: This is the immediate support zone. A break below this level could trigger further downside action.
– 1.0885: This support level corresponds to the 38.2% Fibonacci retracement of the upward movement that started earlier this quarter. A violation here could signal the onset of a deeper retracement.
– 1.0830: Stronger technical and psychological support that aligns with previous consolidation areas. A drop below this figure could suggest a longer-term shift in trend direction.
Key Resistance Levels
If the pair initiates a corrective rally, traders should keep an eye on the following resistance levels:
– 1.1000: The initial obstacle for any bullish recovery. This psychological level will likely invite strong selling if tested again.
– 1.1040: A move above this mark could open the door for a move toward more substantial resistances, offering bullish traders a short-term opportunity.
– 1.1080-1.1100: This zone acts as a critical barrier and has repeatedly pushed the pair back during multiple retests in previous sessions.
Moving Averages and Indicators
– The 50-day moving average (currently near 1.0955) is being tested frequently, serving as dynamic resistance in multiple sessions.
– The 100-day and 200-day moving averages remain well below current price levels, indicating that the longer-term trend still leans toward bullish, but that upside momentum may be weakening.
– Relative Strength Index (RSI): The RSI is currently hovering near the 50-level, neither signaling extreme overbought nor oversold conditions. This suggests the market is in a wait-and-see mode, with no dominant directional bias in the immediate term.
– MACD (Moving Average Convergence Divergence): The MACD is showing signs of convergence, and if a bearish crossover occurs, this may reinforce continuation to the downside.
Fundamental Drivers
U.S. Dollar Strength
The U.S. dollar continues to find strong support from solid domestic economic data. In particular:
– Strong labor market numbers have reduced the urgency for monetary easing by the Federal Reserve.
– Inflation data remains relatively elevated, though it is on a gradual downward trajectory. Still, Fed officials maintain a cautious stance toward future interest rate adjustments.
– Recent speeches by Fed policymakers have hinted at
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