EUR/USD Price Forecast: Trades below 1.1400, near two-month low ahead of Trump-Xi summit

EUR/USD: bearish bias, but summit risk raises reversal potential. At the time of the September 24 report, the pair was near a two-month low. The pressure reflects more than price action: stronger Fed rate-hike expectations support the dollar, while German political instability weighs on the euro. If those drivers persist, the rate-expectations gap and weaker euro-area sentiment could keep EUR/USD under pressure.

The Trump–Xi summit is the near-term volatility catalyst, not a clear directional signal. A breakdown or renewed trade tensions could bolster demand for the dollar; a credible easing of tensions could weaken its haven appeal and prompt a euro rebound. The report also flags oversold momentum, which may slow declines or fuel a short-lived bounce, but does not by itself confirm a trend reversal.

What to watch:

summit messaging and follow-through, shifts in Fed-rate expectations, and developments in German politics. FXStreet identifies the June low near 1.1325 and 1.1300 as potential support areas, with 1.1420–1.1425 as a zone where a recovery would test the bearish view; these are reference levels from the report, not guaranteed floors or ceilings.