EUR/USD Treads Water Above 1.1560 as Fed Expectations Support Dollar

The EUR/USD pair continues to trade above the former resistance area of 1.1390-1.1470, which has now turned into support after a recent breakout.

The 2-hour chart shows the pair extending its recovery toward 1.1550-1.1560, while remaining comfortably above the 20, 50, and 100-period moving averages.

Despite short-term momentum cooling following the latest advance, buyers continue to defend higher lows, suggesting that the broader bullish structure remains intact.

A sustained move above 1.1560 would expose the 1.1600 region, while a return below 1.1470 would weaken the current technical outlook and shift attention back to the previous consolidation range.

The US dollar has found renewed support as investors continue to price in additional Federal Reserve tightening later this year after policymakers maintained a cautious stance on inflation.

Market attention has now shifted toward upcoming US labor market data, particularly the nonfarm payrolls report, which could materially influence expectations for the September policy meeting.

Strong employment figures would likely reinforce Treasury yields and support the dollar, while softer data could revive expectations for a more patient Fed.