EUR/USD Retreats as Fed Uncertainty Limits Euro Gains

The EUR/USD pair has retreated from its recent high after breaking out of the 1.1390 to 1.1460 consolidation range.

The pair's failure to hold above the former resistance zone around 1.1460 suggests that bullish momentum may be fading, with a sustained move below this area increasing the risk of returning to the previous trading range.

The Federal Reserve's recent decision to leave interest rates unchanged and the lack of forward guidance from Fed Chair Kevin Warsh have contributed to the dollar's strength, despite initial post-Fed volatility.

Stronger-than-expected eurozone inflation data has initially supported the euro, but investors remain cautious about chasing its higher value due to rising energy costs that may support inflation but threaten economic activity across the euro area.