European currencies are experiencing pressure due to a poor growth differential and real rate differential when compared to the United States. The outlook for economic growth is becoming less favourable, and the recent decision by Russia to halt diesel exports in anticipation of the upcoming heating season could spell trouble for Europeans, who are already grappling with a high cost of living and rising interest rates.
As a result, both EURUSD and EURINR face increased downside risk over the medium term. However, in the near term, we can anticipate some rebound as the short-term trend has become oversold. Support levels are expected to emerge around 88.20 and 87.75, while resistance is likely to be encountered near 88.80 and 89.30 over the medium term.