EUR/USD has dropped to a 17-month low. During the week of 5-9 October 2026 the pair touched 1.1161 before rebounding, and it now trades around 1.12024, down 0.51% over the past five days. European uncertainty is meeting a stronger dollar.
🌍 The fundamental story
🇫🇷 France: Fiscal risks and political uncertainty
Higher borrowing costs and budget deficit concerns in France are adding pressure on the euro.
🇺🇸 United States: A stronger dollar
Resilient economic data, persistent inflation and higher-for-longer rate expectations continue to support the dollar.
🛢️ Commodities: Oil keeps the pressure on
Higher energy prices and geopolitical tensions keep inflation risk on the table.
📊 Global markets: Higher yields, more volatility
Bond markets are under pressure, growth outlooks are diverging, and risk-off sentiment shows up at times.
📉 What does the chart tell us?
The five-day chart shows EUR/USD sliding from the 1.1250 area to the 17-month low at 1.1161, followed by a rebound. Three zones matter for the pair:
- 1.1230-1.1250 – Resistance zone
- 1.1200-1.1210 – Immediate battleground
- 1.1160-1.1170 – Key support (17-month low)
These are approximate technical zones based on the price action, not guaranteed turning points.
💡 The big takeaway
EUR/USD is a reflection of the changing balance between U.S. economic resilience and European fiscal risk.
The 17-month low highlights strong selling pressure, but after such a sharp move, traders should watch for a potential rebound.
The question for next week: Will 1.1160 hold, or will the euro fall further?
Sources: Reuters, Bloomberg, Financial Times.
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