EUR/USD Trapped Between Tightening Cycles as ECB Confirms September Hike

The EUR/USD pair has been trading in a tight range between 1.1638 and 1.1650, down 0.1% from its Wednesday close. This is due to the market's hesitation until Friday morning.

The pair failed twice at the 1.1685 May high and the 1.1692 Fibonacci confluence, which forms a $7-pip confluence that has rejected the pair.

However, despite this rejection, the correction underneath is mild and orderly, with spot holding above previous resistance at 1.1620, keeping the near-term bullish structure intact.

The ECB accounts published on Friday morning confirmed the plan for a rate hike in September, with policymakers already penciling in another increase, potentially as soon as September 9-10.