The Euro declined to a fresh multi-month low during early Monday trading, with risk sentiment deteriorating further on the back of escalating concerns regarding a deepening debt crisis within the bloc. A sharp sell-off in French government bonds has intensified fears that the European Union’s second-largest economy may struggle to manage its mounting budget deficit.
Compounding the negative outlook is the political uncertainty leading up to the 2027 elections, which continues to stoke anxieties over potential spillover effects from the ongoing fiscal crisis.
This negative momentum extends a steep four-week decline, leaving the currency pair in negative territory for the early days of October after registering a substantial 2.5% loss throughout September.
From a technical perspective, the daily chart remains firmly bearish, with momentum indicators sustaining negative readings for the entire month. However, the Relative Strength Index (RSI) is entering deeply oversold territory, suggesting that the bears may pause for breath ahead of key support levels at 1.1130 (representing the 50% retracement of the 1.0177/1.2082 range) and 1.1098 (aligned with the 200-week moving average).
Any potential consolidation is likely to be capped beneath the 1.1330/55 resistance zone—comprising former lows and reinforced by the 10-day moving average and the broken Fibonacci 38.2% level. This range must hold to preserve the bearish bias, keeping the path clear for a test of the 1.1130/00 support zone. A decisive break below this level would expose the critical psychological support at 1.1000.
Res: 1.1260; 1.1330; 1.1355; 1.1379
Sup: 1.1160; 1.1130; 1.1100; 1.1065
