Will Rising Inflation Drive the Euro to Further Losses? (chart)

EUR/USD Analysis Summary Today

  • Overall Trend: Beginning of a bearish tilt.

  • Support Levels for EUR/USD Today: 11.1690 – 1.1620 – 1.1550

  • Resistance Levels for EUR/USD Today: : 1.1770 – 1.1820 – 1.1880

EUR/USD Trading Signals:

Buy Scenario:

Sell Scenario:

eurusd_2026-04-23_mahmoud.png

Technical Analysis of EUR/USD Today

The EUR/USD pair witnessed a decline during today’s trading as fears of persistent global inflationary pressures grew. This bolstered demand for the US Dollar as a safe haven, pushing the pair to test significant technical support levels.

This decline came amid a renewed rise in oil prices, coinciding with stalled efforts to calm geopolitical tensions. This has reignited fears of a new inflationary wave that might force central banks to maintain tight monetary policies for longer, providing additional support to the USD at the expense of the European currency.

According to top trading platforms, the pair recorded losses extending to 1.1703, settling near the psychological support level of 1.1700. This indicates increasing selling pressure and the likelihood of a continued downward correction in the short term, especially given the diminished risk appetite in the markets.

Declining Eurozone Consumer Confidence Adds Pressure

The euro came under increased pressure after data showed a decline in eurozone consumer confidence to -20.6 in April, compared to -16.4 in March. This indicates continued caution among European households regarding spending, amid concerns about the ongoing repercussions of geopolitical tensions and rising energy costs.

This decline reflects the fragility of the eurozone’s economic recovery, which could limit the euro’s ability to make significant gains against the dollar in the current period, especially given the continued relative strength of the US economy.

Dollar Benefits from Safe-Haven Flows Despite Political Pressure

Despite continued US political pressure to lower interest rates, the US dollar continues to benefit from safe-haven flows amid rising global uncertainty. In this context, analysts believe that any further escalation of geopolitical tensions could further support the dollar, while a reduction in risks could pave the way for a gradual recovery of the euro in the coming weeks.

Technical Analysis of the EUR/USD Pair Today

Technically, the EUR/USD pair is moving near a key support zone at 1.1700. A clear break below this level could open the way for further declines towards 1.1660 and then 1.1620. The Relative Strength Index (RSI) is showing a gradual decline towards neutral levels, reflecting the weakening of previous upward momentum, while the MACD is trending negatively, which supports the likelihood of continued short-term selling pressure.

Conversely, the pair needs to break above 1.1800 to return to an upward trend and target 1.1820 and then 1.1880.

Trading Advice:

Dear TradersUp trader, we still prefer selling the EUR/USD pair on every strong upward bounce, but without risk. Be cautious of trading when price movements are within extremely narrow ranges.

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