Euro managed to the test resistance zone of 1.1425 last Friday as Intraday prices remain positive, holding the market above 1.1380 to back a potential advance towards the 1.1500-25 zone. Below 1.1380 more of a drop is likely with supports at 1.1310 and 1.1210.
The FX markets are bracing for a potentially defining week, after a two-week rally for the dollar on the back of a hawkish Fe.
EUR/USD began the week trading around 1.1381. The US dollar has maintained its strong position following the hawkish outcome of the Federal Reserve's June meeting.
EUR/USD Price Forecasts: Struggling to regain 1.1400 amid geopolitical uncertainty
Euro: Shifts from selloff to consolidation against US Dollar – UOB
Summary:EUR/USD remains under pressure after the Federal Reserve's hawkish outlook strengthened the U.S. dollar, pushing the pair toward the 1.1400 support zone. The pair is attempting to stabilize above support, but upcoming U.S. inflation and labor market data could determine whether buyers regain control or sellers extend the decline.
Euro: Sintra tone and CPI support gains against US Dollar – ING
Euro: Higher levels seen as slow grind against US Dollar – Commerzbank
The EUR/USD remains under pressure as the new week begins. The Fed Chair and the NFP report could shed more light on Fed rate expectations.
Looking at the 4-hour chart, the pair cleared a connecting bearish trend line with resistance at 1.1370. The pair even surpassed the 23.6% Fib retracement level of the downward move from the 1.1622 swing high to the 1.1324 low.
The Euro to Dollar (EUR/USD) exchange rate has edged back above 1.14 after rebounding from multi-month lows earlier this week, helped by a softer US Dollar. Scotiabank believes the Euro is showing signs of stabilising, despite markets trimming expectations for further European Central Bank interest-rate increases.
EUR/USD heads into the second half of 2026 at a critical crossroads, with the pair testing a major multi-year support zone just as the Federal Reserve adopts a more hawkish policy stance. Chair Kevin Warsh's first meetings have reinforced the Committee's commitment to restoring price stability, while markets continue to raise expectations for additional tightening later this year.