EUR/USD Pulls Back to Pivotal Support Amid Event-Rich September

The EUR/USD pair has pulled back after a recent rally, and is now approaching pivotal support at the lower bounds of the uptrend. This pullback marks the end of a 3.1% rally from the July low, which exhausted at a major retracement zone last week.

A deeper break below this support level would increase the risk that a more significant high is in place, while a recovery through resistance would revive the broader advance. Eurozone inflation and key U.S. labor-market data will be closely watched heading into September, with markets assessing the outlook for ECB policy.