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EURUSD steadies as bears pause after a three-day drop

The euro’s weakness is tied to rising expectations for a more aggressive Fed stance after a better-than-expected US flash PMI for September.

Reported · Written up by our desk · Major Pairs

EURUSD edged higher Thursday as sellers took a brief breather following a three-day bear leg, with the pair down about 0.5% on the day Wednesday’s move accelerated.

Action Forex said the euro remains under pressure as markets increasingly price in a more aggressive Federal Reserve monetary policy, a view reinforced by a better-than-expected US flash PMI reading for September.

The outlet added that oversold signals have likely encouraged limited profit-taking rather than a lasting trend change, with the move framed within a broader five-wave decline cycle from the Aug. 28 high near 1.1711.

Action Forex pointed to nearby support around 1.1324, while noting upside is likely to be capped near the 1.1470 to 1.1480 area, keeping the larger downtrend in place.

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