The euro enters the week under renewed selling pressure, with EUR/USD struggling to sustain momentum above the 1.1500 handle as macro conditions continue to favor the U.S. dollar. Despite a broadly cautious risk backdrop, the greenback has found fresh support from resilient U.S. data, hawkish Federal Reserve commentary, and persistent yield differentials that reinforce its carry advantage. Meanwhile, the eurozone faces a confluence of headwinds, soft PMI prints, stagnating growth indicators, and moderating inflation momentum, all of which erode support for the single currency. Technically: EUR/USD has broken below its recent rising trendline, suggesting a tactical short setup may be in play this week as the pair fails to reclaim key resistance around 1.1550 – 1.1600. Sentiment: Positioning data also reveal fading speculative euro longs, adding to downside potential should U.S. macro strength continue to outpace the euro area. EURUSD Trade Setup: Pair / Asset Bias & Entry Stop / Invalidation Targets Why A+ (Fundamentals / Technicals / Sentiment & Positioning) Near‑term Catalysts (UK time) EUR/USD SHORT bias, look to sell below 1.1510 (or upon bounce into 1.1540 – 1.1560) Stop above recent swing high 1.1600 (e.g. 1.1620) invalidates. Target 1.1380 first, then 1.1300 if momentum extends. Fundamentals: USD remains firm amid hawkish Federal Reserve rhetoric and delayed cuts; EUR weighed by weak Zone data. Technicals: EUR/USD broke below key trendline, technicals suggest further downside. Sentiment: Retail and speculative EUR longs have faded; USD strength remains safe‑haven bid. Eurozone PMIs / CPI early in week; US data (ISM/PMI) mid‑week; Fed speak. Chart by TradingView – EURUSD Trade Setup – 5th Nov – Chart Conclusion With the macro, technical, and sentiment landscape aligning, EUR/USD presents a clean A+ (3/3) short opportunity heading into the end of week. As long as the pair remains capped beneath the 1.1600 resistance zone, risk-reward skews decisively to the downside toward 1.1380 and potentially 1.1300. The U.S. dollar remains underpinned by relative growth strength, firm yields, and safe-haven demand, while the euro struggles for fresh catalysts. Traders should watch for incoming Eurozone data and Fed speak for confirmation of ongoing divergence. A sustained break below 1.1450 could accelerate momentum, validating the bearish bias and confirming EUR/USD’s shift back into a medium-term downtrend. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar FX Trade Setups please visit our FX Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice. TerraBullMarkets...
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