Euro Consolidation Stalls at 1.1700 as USD Draws Support from Hawkish Fed
The EUR/USD pair is consolidating near its highest level since late May after breaking out above the 200-day Simple Moving Average (SMA) and the 61.8% Fibonacci retracement level of the April-June decline.
This bullish consolidation phase has stalled at the 1.1700 mark, with bulls waiting for a move beyond this level to place fresh bets and position for an extension of the over three-week-old uptrend.
The US Dollar (USD) has stabilized following the previous day's US bond yields-led slump to a three-month low, acting as a headwind for the EUR/USD pair.
However, the Minutes of the July 28-29 FOMC meeting showed that Federal Reserve officials indicated the need to raise rates soon unless there was more progress on inflation, reaffirming market expectations that the US central bank will raise borrowing costs at least once in 2026.