EUR/USD Faces Renewed Selling Pressure as Dollar Strength Keeps the Euro on the Defensive

Forex

Summary:

EUR/USD continues trading under pressure near the 1.13 handle as investors favor the U.S. dollar ahead of key U.S. inflation data. While the European Central Bank has recently raised interest rates...

SELL EURUSD

EXP

TRADING

1.13700

Entry Price

1.13000

1.14200

1.13719 +0.00138 +0.12%

0.0

Pips

Flat

1.13000

Exit Price

1.13700

Entry Price

1.14200

Market Overview

On 25 June 2026, EUR/USD is fluctuating around 1.135-1.136 after falling to its weakest level in more than a year earlier this week. The dominant driver remains broad-based U.S. dollar strength, supported by resilient U.S. economic data and expectations that the Federal Reserve may still tighten monetary policy once more in 2026. The market is now waiting for fresh U.S. inflation figures that could further reinforce the Fed's higher-for-longer stance.

Although the ECB increased interest rates in June and continues emphasizing its commitment to containing inflation, investors are becoming increasingly concerned about slowing Eurozone growth. This divergence between a relatively resilient U.S. economy and weaker European activity has widened the yield advantage in favor of the dollar, encouraging continued capital flows into USD-denominated assets.

Market Sentiment

Market sentiment remains bearish for EUR/USD despite today's modest rebound. Institutional traders continue buying the dollar on dips while reducing euro exposure as long as U.S. economic data remain firm. The slight pullback in the dollar during today's session appears to be driven mainly by position adjustment ahead of major economic releases rather than a structural shift in sentiment.

With volatility expected to increase around upcoming U.S. inflation data, traders remain cautious about initiating aggressive long euro positions. The overall bias continues to favor selling rallies instead of buying corrections.

Technical Analysis

EUR/USD Faces Renewed Selling Pressure as Dollar Strength Keeps the Euro on the Defensive_1

On the M15 timeframe, Bollinger Bands (20,2) remain tilted downward despite beginning to narrow, suggesting bearish momentum is slowing but has not reversed. Price continues trading below the middle Bollinger Band, indicating sellers still control the short-term trend.

The Ichimoku Kinko Hyo (9,26,52) shows price remaining beneath the Kumo cloud. Tenkan-sen is below Kijun-sen while the future cloud maintains a bearish structure. Chikou Span also remains below previous price action, confirming that the dominant trend is still negative.

The Stochastic (5,3,3) has recovered from oversold territory but is approaching the overbought zone without a confirmed trend reversal. This setup often favors another bearish leg if resistance around 1.1380-1.1400 rejects price. A break below 1.1330 could accelerate selling toward the next support near 1.1300.

Trade Recommendation

Entry: 1.1370

Take Profit: 1.1300

Stop Loss: 1.1420

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