EUR/USD rises on US government shutdown concerns

EUR/USD advanced during Asian trading as concerns over a potential US government shutdown weighed on dollar sentiment. The pair found support above key technical levels as traders positioned defensively ahead of critical US fiscal deadlines. Political uncertainty in Washington has historically created short-term dollar weakness, particularly when combined with concerns about economic disruption from government service interruptions. Markets are closely monitoring Congressional negotiations while also preparing for upcoming economic data releases that could influence Federal Reserve policy decisions. Technical indicators suggest the pair is testing resistance levels, with momentum favoring euro bulls in the near term. The combination of US political risk and data uncertainty has shifted sentiment toward the euro, though traders remain cautious about taking large positions ahead of key economic releases. Support holds at recent lows while resistance emerges at psychological levels above current trading ranges.