9 October 2026 | Daily chart
The euro reaches the bottom of its descending channel
Euro FX futures are trading near 1.1256 after a sharp decline from the August high. Price is testing the lower boundary of the descending channel, while the overbought/oversold indicator has printed a recent buy marker.
This creates a potential buying opportunity for a rebound, although the broader trend remains bearish.
The question is whether buyers can defend the 1.1200–1.1240. A move through 1.1300 would strengthen the recovery case. Until then, the market is showing early signs of stabilization rather than a confirmed reversal.
Key levels to mark on the chart
| Level | Importance |
|---|---|
| 1.1670–1.1700 | Upper channel resistance and the 200 moving average near 1.16995 |
| 1.1546 | 50 moving average; resistance if the rebound develops |
| 1.1280–1.1300 | Resistance zone |
| 1.1200–1.1240 | Recent lows and the lower channel boundary |
Why is a buying opportunity developing?
The main reason is that the euro is now testing the lower boundary of the downward trend channel. As traders, we need to think in probabilities; there is no perfect setup or system. The probabilities lead in favor of a bullish trade in the case of the euro today (9 October 2026). We also have an oversold signal on the daily chart, these combined could mean we are due at least a short term bounce.
Possible Trades
The daily candles are showing some buying strength with wicks to the downside. A close above 1.13 could be the long signal to take, with the first target set at 1.12 and the secondary the upper end of the trend channel.
This is a counter-trend trade; the longer-term trend still remains bearish.
This analysis is for educational and informational purposes only and does not constitute trading advice or a recommendation to buy or sell any futures contracts. Futures trading involves significant risk and may not be suitable for all investors. Always conduct your own research and consult with a licensed financial professional before making trading decisions.
