Euro Short-term Outlook: EUR/USD Selloff Nears Critical Yearly Support

EUR/USD: bearish bias, but downside may be vulnerable to a pause or rebound near support. The September range breakdown and sustained decline keep the near-term technical balance tilted lower. A confirmed break and weekly close below 1.1355–1.1360 would strengthen the case for further weakness, with 1.1325 and 1.1275–1.1276 as subsequent chart references.

However, momentum is stretched and price is approaching a major support zone, raising the risk that fresh selling meets a sharp countertrend reaction. A recovery above 1.1472 would weaken the immediate bearish setup and suggest a more durable low may be forming; 1.1501 is another resistance reference.

For traders, the key distinction is whether support holds or gives way on a closing basis—not simply whether price briefly tests it. The article flags U.S. Core PCE, euro-area inflation and U.S. payrolls as potential catalysts: surprises that shift expected Fed–ECB policy differentials could reinforce or overturn the technical move. Until support or resistance is decisively resolved, the outlook is bearish but increasingly two-sided.