EUR/USD under Pressure Ahead of Fed Meeting

The EUR/USD pair is holding near its lows as it enters the final week of July. The market has been under pressure due to rising inflation risks, which have increased following a renewed escalation in the US-Iran conflict. Restrictions on energy tankers in the Persian Gulf and the Red Sea have pushed oil prices higher.

The Federal Reserve meeting this week will be a key catalyst for the markets, with expectations of at least one rate hike before the end of the year still high. Strong US economic data, including robust PMI readings and a sharp decline in jobless claims, continue to support the dollar.

According to technical analysis, the EUR/USD pair may see a temporary corrective move towards 1.1420, but the broader bearish structure remains intact, with downside potential towards 1.1313. The MACD indicator supports this scenario, with its signal line below zero and pointing firmly downwards.