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ForexMedium•3 March 2026•

1 min read

EUR/USD Slumps Below 1.1600 as Risk Aversion Fuels US Dollar Rally

Two central bankers, Christine Lagarde and Thomas Jordan, with EU and Swiss flags, Euro and Swiss Franc symbols, and coins.

Key Facts

1The EUR/USD pair plummeted 0.85% to reach approximately 1.1585 during the European session.

2The pair is on track to test its three-month low of 1.1575.

The EUR/USD pair experienced a significant decline during the European session, dropping 0.85% to trade near the 1.1585 level. This sharp move lower saw the pair break through the critical 1.1600 psychological support level. The primary driver behind the Euro's weakness is a broad rally in the US Dollar, fueled by a prevailing mood of risk aversion across global markets. Analysts note that the pair is now on track to test its three-month low of 1.1575, which serves as a key technical support zone. The current market sentiment suggests strong bearish momentum for the Euro as investors favor safe-haven assets while the DXY continues to exert downward pressure.