EUR/USD Slides on EU-US Trade Deal Technical Breakdown

EUR/USD experienced a sharp decline of 0.5% to 1.0765 as technical selling accelerated following the EU-US trade agreement announcement. The pair broke through multiple technical support levels, including the 200-hour moving average at 1.0795 and the ascending trendline from July's lows. Volume surged 40% above the 20-day average, confirming the bearish breakout. The trade deal has shifted market dynamics, with traders repositioning for potential dollar strength as reduced trade barriers favor US economic growth. Fibonacci retracement analysis shows the next major support at 1.0735 (38.2% retracement), while resistance has formed at the former support of 1.0800. The daily MACD has crossed into negative territory for the first time in two weeks, suggesting further downside potential. Short-term traders are targeting the 1.0700 psychological level, though oversold conditions on the 4-hour chart may trigger a brief consolidation before the next leg lower.