News & AnalysisCareer
Trading
Explore a wide range of markets with competitive pricing, deep liquidity, and advanced trading tools.
Learn More 
Platform
Trade seamlessly with TMGM's powerful platform, built for speed, precision, and a superior trading experience.
Learn More Trading Platform
Trading Tools
Academy
Learn the fundamentals of trading with beginner-friendly resources, including guides, webinars, and market insights.
Learn More News & Analysis
Get real-time market updates and expert analysis to stay ahead of trading opportunities
Learn More News & Analysis
About
Learn what sets TMGM apart — our global presence, regulatory strength, and commitment to innovation in trading.
Learn More Why Choose TMGM
Sponsorship
EUR/USD Price Forecast: Buyers retake control as a double bottom forms
- US midterm election results put pressure on the US Dollar, lifting EUR/USD above 1.1200.
- With a possible double bottom taking shape near 1.1100, EUR/USD buyers challenge neckline resistance at 1.1250-1.1270.
- Despite stronger momentum readings from RSI and MACD, the longer-term SMAs still sit above the price.
US midterm election results unsettle the US Dollar (USD) on Wednesday, drawing fresh buying into EUR/USD and allowing the Euro (EUR) to recover 1.1200. Last week, the pair reached 1.1104, its weakest level since May 2025, but an improving technical backdrop now suggests buyers are re-establishing a foothold. EUR/USD is trading at around 1.1257 at the time of writing, a gain of more than 0.50% on the day.
A possible double bottom near 1.1100 is visible on the EUR/USD daily chart, and the latest rise has brought its neckline at 1.1250–1.1270 into play. By moving above the 21-day Simple Moving Average (SMA) at 1.1196, the pair has handed buyers a measure of near-term control. It nevertheless continues to trade beneath the 100-day and 200-day SMAs.
The Relative Strength Index (RSI 14), at around 52, points to firmer momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) is moving into positive territory and pushing further above its signal line. Although both indicators favour the recovery, confirmation of a broader bullish reversal is still lacking while the price remains beneath the longer-term averages.
Confirmation of the double-bottom pattern would require a sustained break above the neckline, paving the way for a move towards 1.1350. That level previously provided support and could now serve as resistance. Beyond it, buyers face the 100-day SMA at 1.1421, followed by the 200-day SMA at 1.1548. Clearing those averages would erode the broader bearish outlook.
Initial support lies at 1.1200 and the nearby 21-day SMA. Should the pair slip below this zone, the recovery would lose strength and attention would return to the base at 1.1100. A sustained decline beneath that base would negate the double-bottom formation, exposing EUR/USD to additional losses.
Euro questions answered
Used by the 20 European Union countries within the Eurozone, the Euro ranks second only to the US Dollar among the world’s most traded currencies. Its share of all foreign exchange transactions was 31% in 2022, with average daily turnover exceeding $2.2 trillion. The world’s most traded currency pair is EUR/USD, representing an estimated 30% of all transactions. Next come EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
Based in Frankfurt, Germany, the European Central Bank (ECB) serves as the Eurozone’s central bank, setting interest rates and overseeing monetary policy. Maintaining price stability is the ECB’s principal mandate, whether through containing inflation or encouraging growth. To achieve this, it primarily raises or lowers interest rates. Higher relative interest rates, or expectations that rates will rise, generally support the Euro; the reverse also applies. Monetary policy is determined by the ECB Governing Council at eight meetings each year. The decision-makers comprise the heads of the Eurozone’s national central banks and six permanent members, among them ECB President Christine Lagarde.
Measured using the Harmonised Index of Consumer Prices (HICP), Eurozone inflation is a key economic indicator for the Euro. An inflation reading that exceeds expectations, particularly one above the ECB’s 2% target, requires the central bank to increase interest rates to bring price pressures back under control. When interest rates in the region are relatively high compared with those elsewhere, the Euro usually benefits, as global investors find the region a more attractive destination for their funds.
By revealing the economy’s health, data releases can move the Euro. GDP, Manufacturing and Services PMIs, employment figures and consumer sentiment surveys are among the indicators that can shape the single currency’s direction. Economic strength supports the Euro by drawing in greater foreign investment and potentially prompting the ECB to raise interest rates, which would directly strengthen the currency. Weak economic readings, by contrast, are likely to weigh on the Euro. Particular weight is attached to figures from Germany, France, Italy and Spain. These are the euro area’s four largest economies and together represent 75% of the Eurozone’s economy.
The Trade Balance is another release of importance to the Euro, tracking the gap between a country’s export earnings and its spending on imports during a specified period. Strong overseas demand for a country’s exports creates additional demand for its currency as foreign buyers seek to purchase those goods, thereby increasing its value. A positive net Trade Balance consequently strengthens a currency, while a negative balance has the opposite effect.
POPULAR ARTICLES
1Australian Dollar rebounds as dovish RBA signals are eclipsed by US election fallout2Euro area: Upside risks to core inflation build – Commerzbank3British Pound holds near seven-week high ahead of BoE as US elections weigh on USD4US Dollar faces prospect of payrolls-led relief sell-off – TD Securities5Mexican Peso Faces Risks as Banxico Holds Steady – Rabobank6EUR/USD Price Forecast: Buyers retake control as a double bottom forms7Euro area: ECB path assessed amid stagflation risks – Standard Chartered8US Dollar softens as midterms drive policy shifts – ING9China: Equity downside constrained by policy support – Societe Generale
Connect With Us
Contacts
Phone: +61 2 8036 8388
Fax: +61 2 8036 8388
Email: support@tmgm.com
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved