The EUR/USD pair has declined further, reaching a new two-month low, influenced by a stronger US Dollar and dovish expectations for the European Central Bank (ECB).

Key Factors:

• US Inflation: The US Consumer Price Index (CPI) data showed a faster-than-expected increase in inflation, which could lead to further Fed rate hikes.
• ECB Monetary Policy: The ECB is expected to cut interest rates further, but the pace of cuts may be slower than previously anticipated.
• Eurozone Economic Outlook: The Eurozone economy is facing headwinds, with Germany’s economic growth expected to decline.

Technical Analysis:

• Downward Trend: The EUR/USD pair is in a downward trend, with potential for further declines.
• Support Levels: The 1.0900 level is a key support level, with potential for further support at the 200-day EMA.
• Resistance Levels: The September 11 low of 1.1000 and the 20-day EMA at 1.1090 are potential resistance levels.

Overall Outlook:

The EUR/USD pair is likely to remain under pressure, influenced by economic factors, market sentiment, and the Federal Reserve’s monetary policy. Traders should monitor technical indicators for signs of a trend reversal.