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High Impact

EUR/USD Price Forecast: Softens to near 1.1200, sub-100-day SMA keep outlook bearish

📅
🏷Markets
📰via FXStreet
✍️Edited by Luís Barata

EUR/USD has slipped toward the 1.1200 area, and the pair's position below its 100-day simple moving average is cited as keeping the technical outlook bearish. The move reflects a technical deterioration rather than a new fundamental shock, with the sub-100-day SMA acting as a trend filter that tends to attract momentum-based selling once broken and fail to reclaim. Through the rate-differential channel, a softer euro against the dollar signals that markets are maintaining or widening expectations of relatively firmer U.S. policy rates versus the euro area, pressuring the single currency. EUR/USD is the most directly exposed instrument, with knock-on effects for dollar index positioning and euro-linked crosses, as systematic and trend-following flows tend to amplify moves through key moving-average levels. Traders should watch the next euro area inflation print and U.S. Consumer Price Index release, since upside surprises in U.S. inflation would reinforce dollar strength and test whether the 1.1200 support can hold.

Source: Originally reported by FXStreet at October 23, 2026. Summary and market context by Trading News Terminal editorial.

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