Euro Under Pressure: US Dollar Dominance Continues

EUR/USD  declined sharply on board-based US dollar buying. It hit an intraday low  of 1.15272 and is currently trading around 1.15345. Overall trend remains bearish as long as resistance 1.1600 holds.

A fresh trade agreement between the US and EU, which promoted trade optimism and was seen as mostly favoring the US, preventing a transatlantic trade war, significantly strengthened the US Dollar in late July 2025. The dollar's appreciation against other main currencies followed, with the euro falling as the treaty eliminated market uncertainty and showed the negotiating power of the United States, further strengthened by good economic figures and steady Federal Reserve interest rate projections.

The pair is holding below the 55 EMA, 200 EMA, and 365 EMA in the 4-hour chart. Near-term resistance is seen at 1.1600, a break above this may push the pair to targets of  1.1660/ 1.1745/1.1780/1.1800/1.1835/1.19090/1.1956/1.200. On the downside, support is seen at 1.1500; any violation below will drag the pair to 1.1435/1.1360/1.1300.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)-  Bearish

Average Directional Movement Index (ADX) - Bearish

 It is good to sell on rallies around 1.1578-80 with a stop-loss at 1.1625 for a target price of 1.1500.