The Euro is facing further weakening against the US Dollar, with EUR/USD sinking 0.6% and on track for its worst weekly performance since early May. The near-term technical landscape suggests that the Euro may continue to weaken, as prices have closed below the March low, exposing immediate support at the 100% Fibonacci extension. Further losses could bring the focus to the 123.6% level. On the other hand, a potential turn higher may face resistance from the falling trendline from July, with the 61.8% level acting as a key obstacle.
Meanwhile, EUR/GBP is showing signs of weakening against the British Pound. The exchange rate appears to be rejecting the resistance zone of 0.8658 – 0.8701, potentially indicating a move back to the support range of 0.8493 – 0.8519. The hold and rejection of the 200-day Moving Average further supports this bearish outlook. Confirmation of a push lower would shift the focus to immediate support at the 0.861 inflection point, while breaking above the resistance zone would introduce a bullish stance, with the 61.8% Fibonacci retracement level becoming the target.
In conclusion, the Euro is expected to continue weakening against both the US Dollar and the British Pound in the near term. However, specific levels and trends should be closely monitored to determine the next direction for these currency pairs.
