Euro slipped to the new multi-month low in early Monday trading, as sentiment was soured further by growing concerns about deepening debt crisis in the bloc, after sharp sell-off of French government bonds added to fears that EU’s second largest economy won’t be able to handle its budget deficit.

Political uncertainty ahead of 2027 election contributed to overall negative picture and fuels fears of crisis spillover.

The pair extends steep fall of past four weeks and remains in red in early days of October after ending the month of September with 2.5% loss.

Technical picture is firmly bearish on daily chart (momentum remains negative for the whole month)  but deeply oversold RSI suggests that bears may take a breather ahead of strong supports at 1.1130 (50% retracement of 1.0177/1.2082) and 1.1098 (200WMA).

Consolidation should be ideally capped under 1.1330/55 zone (former low, reinforced by 10DMA / broken Fibo 38.2%) to keep bears intact for attack at 1.1130/00 target zone, violation of which would expose psychological 1.1000 support.

Res: 1.1260; 1.1330; 1.1355; 1.1379
Sup: 1.1160; 1.1130; 1.1100; 1.1065