Last Updated on September 29, 2026 by Deon
EUR USD Stays Under Pressure
The EUR USD pair is having trouble getting back on track as the US Dollar stays strong across the currency market. The pair was trading near 1.1365 to 1.1370 on September 29 close to its point since late July.
The Euro has had trouble because of reasons, including higher US Treasury rates chances of more Federal Reserve increases and new problems in the world. At the time recent words from European Central Bank President Christine Lagarde have made people think the ECB will not act strongly.
These things have made the US Dollar stronger for now.
1.1350 Becomes Important Support
From a point of view the 1.1350 area is a big level for EUR USD. FXStreet analysis says that if the pair breaks below this support it could go lower.
Below 1.1350 the next place to watch is the year-to-date low near 1.1325 the big number 1.1300.
If the pair can stay above 1.1350 that could be important for seeing if the drop stops or keeps going.
US Dollar Benefits From Higher Rates
The US Dollar has gotten stronger because of a jump in Treasury rates. The Dollar Index stayed above 101.00 as US rates kept going up.
Higher US rates can make people want to buy dollar assets and make the currency more attractive compared to others with lower rates.
For EUR USD this is a problem. If Treasury rates keep rising the Euro might not be able to get stronger unless European rates change too.
Fed Rate Increase Expectations
Federal Reserve policy is one of the important things affecting the pair. The Fed expects another rate increase before the end of the year after a 25-basis-point increase in September. Concerns about energy inflation have also made people think the Fed might raise rates more.
Markets are watching US data. Strong numbers could make people think rates will go up more while weak numbers could make people change their minds.
The next big data includes US JOLTS job openings, consumer confidence, inflation data and the Nonfarm Payrolls report.
ECB Takes a Slow Approach
The European Central Bank is showing an approach. ECB President Christine Lagarde said a slow response is still right and that there is not proof that energy prices are making wages go up.
This has made people expect less of an ECB increase. Interest rates are very important for EUR USD because they affect the difference in rates between the Eurozone and the US. If people think US rates will stay higher the Dollar can keep getting stronger.
Middle East Risks Help the Dollar
Events in the Middle East are also affecting the currency market. New problems in the Middle East and the Strait of Hormuz have made people worried. FXStreet says these events have added support to the US Dollar.
Higher energy prices can also make people worried about inflation. If investors think energy costs will keep prices high they might think the US will be more strict with money. This mix can make the Euro weaker.
Eurozone Data Does Not Help Much
Recent data from the Eurozone has not given the Euro help.
The final reading on Eurozone Consumer Confidence and the European Commission Consumer Inflation Expectations are some numbers to watch. ECB officials like Lagarde, Philip Lane and other leaders will also speak.
Traders will look at these things to see what the ECB might do next.
Better numbers from Europe could help the Euro by making people think growth is better. Worse numbers could make the pressure on EUR USD worse.
EUR USD Technical View
The term technical view is still cautious. FXStreet analysis shows EUR USD trading below levels with the 1.1350 support area being the first big place to watch. If the pair stays below that it could go down to 1.1325 and then 1.1300.
On the side if it rises it could hit resistance around 1.1460. If it goes above that the big number 1.1500 might be next. The 200-day SMA near 1.1557 is another point. These are places to watch not sure future prices.
What Traders Need to Watch
things could affect EUR USD soon:
US Treasury rates: More increases could help the Dollar.
Fed policy: Expectations about rate increases are still important for Dollar demand.
ECB messages: Things said by leaders could change expectations about Euro rates.
US data: JOLTS, inflation and jobs numbers could move the pair.
Middle East events: New problems could change the Dollar and energy prices.
1.1350 support: Breaking below it would be a technical sign.
EUR USD Outlook
EUR USD is still facing pressure because of demand for the US Dollar higher Treasury rates and expectations for more Federal Reserve increases. At the time the ECBs slow approach has not helped the Euro much.
The 1.1350 level is now important. If the pair stays above it the pair might stabilize. If it breaks lower the 1.1325 and 1.1300 areas will be next.
Traders will keep watching US data Fed comments, ECB messages and events in the Middle East. These things will decide if EUR USD can stay stable or remains under pressure.
FAQs
What is the main support level for EUR USD?
The 1.1350 area is important according to analysis.
Why is the US Dollar getting stronger?
Higher US Treasury rates more Fed increases and world problems have helped the Dollar.
What happens if EUR USD breaks below 1.1350?
The next levels are around 1.1325 and 1.1300.
What could help the Euro?
Better numbers from the Eurozone or more talk, about ECB policies could help.
