EUR/USD Struggles to Recover Amid Fed Outlook and Middle East Uncertainty
The EUR/USD currency pair is struggling to recover from recent selling pressure, despite some softening of the U.S. dollar following a temporary de-escalation in Middle East tensions.
A combination of factors is preventing a stronger rebound in the euro, including expectations that the Federal Reserve will maintain a restrictive stance for longer and ongoing energy price uncertainty.
The European Central Bank has left interest rates unchanged at 2.25%, citing renewed volatility in oil prices as a potential threat to disinflation and monetary policy decisions in the coming months.
The technical picture remains bearish, with EUR/USD trading below a key resistance zone around 1.1410-1.1460, which has attracted fresh selling on every attempt to recover toward it.