EUR/USD Price Forecast: Hits fresh low since July 29, around 1.1425 as USD stays firm

EUR/USD: near-term bearish, but vulnerable to a corrective bounce. A fresh multiweek low around 1.1425 reinforces downside momentum, while the broader driver appears to be a firm dollar and rising US-rate expectations relative to an increasingly questioned outlook for further ECB tightening. That yield-differential narrative favors USD, particularly if US activity data remain resilient and euro-area surveys disappoint.

The move is not one-way: the pair is approaching the 1.1400 area, with the late-July base near 1.1350 another reference if selling persists. FXStreet also notes momentum is stretched, which raises the risk of a short-term rebound without necessarily reversing the bearish bias.

What matters next:

eurozone flash PMIs and German business sentiment for signs of weakening growth—and whether those readings undermine expectations for ECB rate increases—alongside US flash PMIs and Fed commentary for confirmation of dollar support. A stronger-than-expected euro-area data pulse or softer US indicators could prompt a relief bounce; sustained US strength and weaker European data would leave downside pressure in place.