Rising oil prices and hawkish Fed expectations lift the USD, pushing EUR/USD to three-week lows below key support levels.
EUR/USD fell to around 1.1379 on Thursday, its lowest level in three weeks, as escalating Middle East conflict drove oil prices higher and bolstered expectations for a more hawkish Federal Reserve. The US Dollar Index (DXY) recovered to 101.40 after hitting an intraday low of 100.94, reflecting increased demand for the USD.
The European Central Bank’s decision to hold interest rates steady drew minimal market reaction. Technically, the pair remains below its 21-day Simple Moving Average (SMA) at 1.1415 and the 50-day SMA at 1.1504, with the 100-day SMA at 1.1576 reinforcing a bearish outlook. The Relative Strength Index (RSI) at 39 signals persistent downward momentum.
Immediate support lies at 1.1350, with a break below this level potentially exposing further downside. Resistance is seen at the 21-day SMA near 1.1415, followed by the 50-day and 100-day SMAs.