The euro’s rally against the U.S. dollar stalled on Monday, with the EURUSD pair briefly piercing $1.1705 before retreating under $1.1680. The move marked yet another rejection at a descending resistance line that has capped upside momentum since early July, leaving traders debating whether this is a pause before a breakout or the start of another pullback.
This latest reversal represents the third touchpoint on the downtrend line. The first rejection was recorded on July 1 near $1.1830, followed by a second on July 28 around $1.1770. Monday’s fade from $1.1705 reinforces the technical pattern that euro bulls must overcome if they are to push the pair higher.
For euro buyers, the critical challenge lies at the $1.17 level. A convincing break above this threshold could pave the way toward $1.18 and potentially unlock broader bullish momentum. However, as long as resistance holds, the bias favors range-trading conditions or even a corrective dip lower.
Looking ahead, traders will closely monitor U.S. inflation data and European economic releases for fresh catalysts. With the Federal Reserve’s policy path still in focus and the European Central Bank signaling cautious optimism, the EURUSD pair could face heightened volatility in the sessions ahead.
For now, the euro is caught between bullish optimism and persistent technical resistance — leaving the next decisive move hanging on whether buyers can finally break the downtrend barrier.
