EUR/USD Falls Below 1.1400 as USD Strengthens, But Downside Risks Remain Capped

EUR/USD Slips Below 1.1400 as USD Demand Rises, But Downside Appears Limited

Forex Market Update – June 10, 2025

The EUR/USD pair fell below the 1.1400 mark in the early Tuesday Asian session, pressured by a resurgent US Dollar (USD) and renewed demand on the back of strong US jobs data. After testing the 1.1435 resistance level, the euro struggled to maintain bullish momentum and encountered fresh supply.

US Dollar Supported by NFP Surprise and Trade Optimism

Friday’s stronger-than-expected US Nonfarm Payrolls (NFP) report tempered market expectations for aggressive Federal Reserve (Fed) rate cuts in the near term. Additionally, upbeat sentiment surrounding US-China trade negotiations, which resumed for a second day in London, has supported the dollar and encouraged traders to unwind bearish USD positions.

Also Read: How Strong Jobs Data Impacts Fed Rate Path

However, despite this short-term strength, concerns over US fiscal stability and speculation about a possible Fed rate cut in September continue to linger, which could limit further upside in the dollar and offer some support to EUR/USD.

ECB’s Hawkish Tone a Cushion for the Euro

While the USD gains, the European Central Bank (ECB) has provided support to the euro by signaling that no further rate cuts are likely after its recent policy meeting. This relatively hawkish stance contrasts with the Fed’s cautious outlook and may help limit EUR/USD losses in the near term.

Learn More: ECB Policy Outlook and Its Effect on EUR/USD

Technical Outlook: Key Levels to Watch

• Support: 1.1370, 1.1335
• Resistance: 1.1435, 1.1470

A sustained move below 1.1400 could see the pair testing the 1.1370 support zone, though downside is expected to remain limited as traders balance Fed dovishness against ECB resilience.

Conclusion

The EUR/USD pair is trading under pressure below 1.1400, but cautious Fed expectations and a hawkish ECB stance could help limit any deeper pullbacks. The outlook remains neutral to mildly bearish, with upcoming macro data and trade developments likely to determine near-term direction.