Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
EUR/USD Technical Analysis: Euro Hits 2-Year Low, May Extend Drop

EUR/USD Technical Analysis: Euro Hits 2-Year Low, May Extend Drop

Ilya Spivak,
What's on this page


  • Euro down to 2-year low vs US Dollar as Trump invites currency war
  • Confirmation of near-term support break may set up probe below 1.09
  • Monthly chart positioning hints prices flirting with a major breakdown

Get help building confidence in your EUR/USD strategy with our free trading guide!

The Euro has cleared August’s swing bottom, dropping to the lowest level in two years against the US Dollar. The unit wilted against the backdrop of bellicose comments from US President Donald Trump, who seemed to be inviting an EU-US currency war late last week.

Sellers are now testing below the 76.4% Fibonacci expansion at 1.0955. A break below that confirmed on a daily closing basis opens the door for a challenge of the 100% level at 1.0864. The August 1 low at 1.1027 has been recast as near-term resistance.

A rebound that brings prices above this barrier – again with confirmation on a daily close – brings the exchange rate up to a series of back-to-back upside hurdles starting at 1.1069. Neutralizing immediate selling pressure probably requires a close above falling trend resistance set from late June, now at 1.1149.

Euro vs US Dollar price chart - daily

Daily EURUSD chart created in TradingView

Zooming out to the monthly chart for a somewhat broader perspective, EUR/USD managed to close out August with a narrow hold above the four-year inflection level at 1.0980. The barrier may give way if sellers’ current momentum is sustained however, putting the 1.0459-1.0563 zone into focus.

Euro vs US Dollar price chart - monthly

Monthly EURUSD chart created in TradingView


--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.