EUR/USD Faces Sustained Selling Pressure Below 1.0800 Support

EUR/USD continues its downward trajectory, trading at 1.0765 after falling 0.5% (55 pips) as persistent selling pressure undermines the euro. The US Dollar Index surged to 104.50, its highest level in three weeks, supported by hawkish Federal Reserve expectations and robust US economic fundamentals. European economic concerns intensify with German industrial production showing unexpected weakness and ECB officials hinting at a potential pause in rate hikes. Technical analysis reveals EUR/USD has broken below the critical 1.0800 psychological support, with the next major support at 1.0730 (May low). Resistance now stands at 1.0800-1.0820 zone. The bearish momentum indicators and negative divergence on the daily RSI suggest selling pressure will likely persist. Traders are positioning for a potential test of 1.0700 if upcoming Eurozone inflation data disappoints market expectations.