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EUR/USD slips after failing to clear 1.1418

The US dollar index is up about 0.2%, and EUR/USD is set to be influenced this week by the Fed decision and Eurozone July HICP data.

Reported · Written up by our desk · Major Pairs

EUR/USD gave back much of its early gains after failing to move above Monday's intraday high of 1.1418, according to FXStreet. The pair was last around 1.1392, keeping a mildly bearish tone as it remains under the 20-day exponential moving average near 1.1419.

FXStreet said the dollar strengthened after a weak start to the week, with the US Dollar Index trading almost 0.2% higher near 1.1395. The report linked the earlier dollar softness to a pause in military aggression between the United States and Iran over the weekend that reduced demand for safe-haven assets.

Looking ahead, FXStreet pointed to key catalysts for the currency pair: the Federal Reserve monetary policy announcement on Wednesday and Eurozone Harmonized Index of Consumer Prices data for July on Friday. Investors expect the Fed to keep interest rates unchanged in the 3.50% to 3.75% range and provide no guidance, while also noting upside inflation risks.

On the technical side, the report cited rejection near the breakdown region of the 20-day EMA around 1.1420 and said the RSI near 43 indicates subdued bearish momentum. It identified near-term resistance around 1.1420 and support around 1.1381, with structural support seen near 1.1312.

Latest closeEUR/USD 1.137 ▼0.3%|Dollar index 101.47 ▲0.0%

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