EUR/USD – Price Analysis and Forecast: Trump–Xi Meeting May Influence the Pair

The EUR/USD pair has halted its decline, setting a new September low around 1.3679 near the round level of 1.3700, as bears are showing caution ahead of the important meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping.

At the same time, the US dollar has slowed its advance after significant gains the previous day, when it reached a two-month high. This is providing some support for the EUR/USD pair. However, against the backdrop of growing expectations of another interest-rate hike by the US Federal Reserve by the end of the current year, as well as geopolitical uncertainty, the dollar remains in a favorable position. The single currency is also being undermined by political instability in Germany, indicating that the path of least resistance for this currency pair remains downward.From a technical perspective, the Relative Strength Index (RSI, period 14) has fallen into oversold territory, indicating a slowdown in further declines and a correction, although it does not yet point to the formation of a sustainable bottom for the EUR/USD pair. In addition, the MACD indicator is also below the zero level, indicating that bearish momentum is still intact, while short-term corrective rebounds may quickly run out of momentum. The nearest resistance is at the round level of 1.1400.

The nearest support is the 1.1370–1.1353 level. The annual low around 1.1322, established in June, may provide support before the round level of 1.1300. If this level is broken, the EUR/USD pair risks suffering deeper losses.