The Euro could gradually rise and test the 1.1680 level, but a significant increase beyond this point is unlikely. Recently, its weakness has stabilized, and we expect it to move between 1.1575 and 1.1720. In the last 24 hours, the Euro seemed to be on the rise but lacked momentum, staying within the range of 1.1575 to 1.1635. The US Dollar also strengthened, fluctuating between 1.1600 and 1.1647. Key support is at 1.1630, and if it falls below 1.1610, it would suggest reduced upward pressure. In the next 1-3 weeks, we noted a negative outlook for the Euro last week, with lower chances of hitting 1.1490. Although downward momentum is slowing, as long as the Euro stays above 1.1540, it could exceed 1.1645, indicating stability. The Euro rose above 1.1645, peaking at 1.1647, which reinforces last week’s stabilization. We maintain a neutral stance with an expected trading range of 1.1575 to 1.1720.

Market Observations And Insights

The FXStreet Insights Team shares selected market observations from experts, offering insights from various analysts. The Euro’s early weakness last week has stabilized, resulting in a neutral outlook. Currently, we expect the EUR/USD to trade within a channel of 1.1575 to 1.1720. This scenario is favorable for strategies that benefit from low volatility, like selling strangles or iron condors with strike prices outside this range. This perspective is backed by the latest Eurozone Harmonised Index of Consumer Prices (HICP) data for September 2025, which indicated inflation easing to 2.8%, matching market expectations. Additionally, recent communications from both the European Central Bank and the Federal Reserve suggest a pause in their rate hikes, reducing a major source of volatility. This alignment in monetary policy supports the idea of a stable period for this currency pair.

Sideways Market Action

In the short term, there is potential for a gradual rise to test the 1.1680 level. Due to the lack of strong upward momentum, selling call options with strike prices at or above the 1.1720 resistance level could be a smart way to earn income. A drop below 1.1610 would indicate that the upward pressure has weakened. This sideways market action is common; we experienced a similar range-bound trading phase for several months in 2023 after a major policy change from the central banks. During that period, implied volatility on EUR/USD options dropped to multi-year lows, benefiting option sellers. This historical context suggests that the current 1.1575 to 1.1720 range may persist for several weeks. Create your live VT Markets account and start trading now.

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