EUR/USD Back In The Red, 1.1500 In View

October has already been a rough month for EUR/USD bulls. The action has been decisively bearish, extending the losses of September. At press time, the EUR/USD is positioned to close in the red for the sixth consecutive forex session.

No doubt about it, recent fundamentals have not been kind to the Euro. Concerns from Italy, strong U.S. economic metrics, and news of USMCA have all contributed to losses vs the Greenback. All in all, the first three days of October are ones to forget if you were on the long side of this market.

Let’s take a look at the daily chart and see if 1.1500 is going to hold up as a short-term bottom.

EUR/USD Technical Outlook

On Tuesday, the EUR/USD turned in a proximity test of the 1.1500 handle, posting a 1.1505 session low. Buyers dug in and defended this level with vigor.

After an early session rally above Tuesday’s high (1.1580), it has been all downhill. Price has fallen from near 1.1600 to just above 1.1500. If you got in on the action, well done!

Overview: At the moment, all eyes are on the 1.1500 handle. Price last traded beneath this level during late August. Given the current fundamentals facing this pair, we may be headed under 1.1500 yet again.

The economic calendar for the rest of the week is wide open. This afternoon features a speech from FED Chair Jerome Powell. Other than that, we will be waiting for Friday’s U.S. NonFarm Payrolls report. Barring any surprises from Powell, the EUR/USD is likely to hold above or consolidate near 1.1500 for the near future.