EUR/USD Analysis: The Rate Updates Its Multi-month Low

<img src="https://images.unsplash.com/photo-1621280336935-ed7cae618aac?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDF8fGV1cnxlbnwwfHx8fDE2OTYzMjAyMzh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="EUR/USD Analysis: The Rate Updates Its Multi-month Low" /><p>Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023.</p><p>The reason seems to be that in an environment where central banks are raising rates to combat inflation, the US economy appears to be favored. Yesterday&apos;s batch of news confirmed this:<br>→ US ISM Manufacturing PMI index turned out to be higher than expected (actual = 49.0; forecast = 47.8; previous value = 47.6).<br>→ In his speech at a roundtable in Pennsylvania, the Fed chairman said: “Lots of good things happen,” commenting on the strong labor market. Today, by the way, at 17:00 GMT+3 JOLTS data on the number of vacancies will be released, which can confirm the stability of the economy.</p><p>The attractiveness of USD is also affected by rising US government bond yields, as investors need dollars to buy them.</p><p>How long can the fall of the euro continue, which is already “settled” below the level of 1.05?</p><p>If the fundamental balance of power between the economies of Europe and the United States remains unchanged, the rate may reach the lower boundary of the bearish channel (shown in red).</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/32-.png" alt="EUR/USD Analysis: The Rate Updates Its Multi-month Low" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/32-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/32-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/32-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/32-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Looking ahead to the last quarter of the year, this could mean 1.03 euros per US dollar.</p><p>At the same time, technically:<br>→ spikes in volatility over the past 7 days may be due to the fact that the euro dropped below spring lows around 1.0533, which led to the rebalancing of large portfolios;<br>→ the line shown in black may resist recovery attempts.</p>