FOMC Meeting Looms: EUR/USD Pair Stuck Near Monthly Low

The EUR/USD pair is trading near its monthly low as investors await the outcome of the FOMC policy meeting. The Federal Reserve's decision on interest rates, expected to remain unchanged, will provide crucial cues for USD price dynamics and influence the EUR/USD pair.

Despite a pause in US-Iran hostilities leading to lower crude oil prices and easing inflation fears, concerns about significant disruptions to global oil supplies keep inflation risks in play. This maintains the fundamental backdrop in favor of USD bulls, suggesting any attempted recovery in the currency pair is likely to be sold into and remain capped.

The FOMC policy meeting will give investors insight into the Fed's future policy path, which will shape the near-term US Dollar price dynamics and impact the EUR/USD pair. It is prudent to wait for strong follow-through buying before confirming that the EUR/USD pair has formed a near-term bottom and positioning for any meaningful appreciating move.