EUR/USD Slides as Euro Weakness Deepens on Soft Survey Data

EUR/USD has extended its decline as the euro faced renewed selling pressure, with bearish momentum already building before the latest survey data compounded the move lower. The single currency had been leaning weaker against the US dollar on deteriorating Eurozone sentiment, and a disappointing economic survey release accelerated the downside. The data reinforced concerns about the health of the Eurozone economy, raising questions about the European Central Bank's policy trajectory and whether additional rate cuts may be required to support growth. From a technical standpoint, EUR/USD has broken below near-term support levels, opening the door for further losses toward lower support zones. Resistance has formed at the recent breakdown area, which is now expected to cap any corrective bounces. The US dollar, meanwhile, continues to benefit from relative economic outperformance and firmer Fed rate expectations. Traders should monitor upcoming Eurozone PMI releases and ECB commentary for further direction, as the fundamental backdrop currently favors continued euro weakness against the greenback.