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EUR/USD Weakness Persists — Markets Brace for Next Leg Lower

EUR/USD Weakness Persists — Markets Brace for Next Leg Lower

Key Highlights

  • EUR/USD started a fresh decline from 1.1925 and dipped below 1.1840.
  • A key declining channel is forming with resistance at 1.1815 on the 4-hour chart.
  • GBP/USD is again moving below the 1.3600 support.
  • Gold could aim for a fresh move toward $5,300.

EUR/USD Technical Analysis

The Euro failed to settle above 1.1900 against the US Dollar. EUR/USD dipped below 1.1880 and 1.1840 to enter a bearish zone.

Looking at the 4-hour chart, the pair settled below 1.1840 and the 100 simple moving average (red, 4-hour). The pair even dipped below the 200 simple moving average (green, 4-hour) before the bulls appeared near 1.1740.

The pair is now consolidating losses above 1.1740. There was a move above the 23.6% Fib retracement level of the downward move from the 1.1928 swing high to the 1.1742 low.

On the upside, the pair is now facing hurdles near 1.1815 and the 38.2% Fib retracement level of the downward move from the 1.1928 swing high to the 1.1742 low. There is also a key declining channel forming with resistance at 1.1815.

The next stop for the bulls might be 1.1850 and the 100 simple moving average (red, 4-hour). A close above 1.1850 could open the doors for more gains. In the stated case, the bulls could aim for a move to 1.1900. The main resistance sits near 1.1925.

Immediate support could be 1.1740. The first major area for the bulls might be near 1.1670. The main support sits at 1.1620, below which the pair might gain bearish momentum. In the stated case, it could even revisit 1.1500.

Looking at GBP/USD, the pair is again moving lower and might continue to move down if there is a close below 1.3420.

Upcoming Key Economic Events:

  • German IFO Business Climate Index for Feb 2026 – Forecast 88.4, versus 87.6 previous.
  • US Factory Orders for Dec 2025 (MoM) – Forecast +1.1%, versus +2.7% previous.

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