European Currencies' Decline Slows Near Key Levels
FXOpen
As anticipated, investor concerns over escalating trade tensions between the U.S. and Europe, following Donald Trump’s U.S. election victory, have driven the euro and pound toward critical support levels.
GBP/USD
Last week, GBP/USD sellers pushed the pair down to the significant 1.2600 level. After testing this support, the downward trend paused, transitioning to sideways movement within the 1.2700–1.2600 range.
Technical analysis suggests the possibility of an upward correction, with a bullish "engulfing" pattern visible on the daily timeframe. If the price breaks above 1.2700 in the next trading sessions, a move toward 1.2840–1.2800 could follow. Conversely, breaking the recent low near 1.2600 might open the path to 1.2500–1.2450.
Key events to watch:
- 10:00 (GMT+3): UK Consumer Price Index (CPI) for October.
- 16:30 (GMT+3): UK House Price Index.
- 19:00 (GMT+3): Speech by Bank of England MPC member Ramsden.
EUR/USD
EUR/USD technical analysis indicates a potential short-term upward correction, as sellers have struggled to break the 1.0500 support for about five days. Sustained movement above 1.0620 in the upcoming sessions could lead to a test of resistance levels at 1.0740–1.0700. However, a break below 1.0500 might result in revisiting last year’s lows at 1.0450.
Upcoming news influencing EUR/USD:
- 12:00 (GMT+3): ECB Financial Stability Report.
- 13:00 (GMT+3): Eurozone construction output for September.
- 16:00 (GMT+3): ECB President Christine Lagarde’s speech.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Gold: Attempt to Break Out of the Short-Term Trend
Fundamental backdrop
In April, US inflation stood at 3.8% year-on-year — the highest level since May 2023. A significant contribution came from rising fuel prices amid escalating tensions in the Middle East. Market reaction was somewhat paradoxical: instead of inflows
USD/JPY and USD/CAD Test Key Levels Ahead of the ADP Employment Report
The US dollar is holding on to its recently gained ground following a series of strong macroeconomic releases and a rise in US Treasury yields. Additional support for the greenback comes from resilient inflation readings, expectations that the Federal Reserve
EUR/GBP: June ECB Meeting Could Bring the Period of Equilibrium to an End
Fundamental backdrop
The divergence in the monetary policy paths of the ECB and the Bank of England is creating a mixed outlook for the pair. Having completed a cycle of eight consecutive rate cuts in 2025, the ECB left its