EUR/USD Tests Critical 1.146 Support After Hawkish FOMC
The euro slid to 1.1460 following a hawkish Fed meeting, setting the stage for a potential drop to 1.1350 or a bounce to 1.1600.
Key points
- EUR/USD has fallen to 1.1460, a key support level formed in June and tested in July.
- A hawkish FOMC meeting strengthened the dollar, pushing the euro to its lowest level since July.
- Breaking 1.1460 could lead to a drop toward 1.1350, while holding it may allow a rise to 1.1600.
EUR/USD has dropped to 1.1460, marking a critical technical level. This support zone was last tested in July before the pair rallied to 1.1700.
A hawkish Federal Reserve meeting drove the dollar higher and pushed the euro lower. The currency pair now sits at a pivot point that will determine its next major trend.
Support level defines current risk
Traders view the 1.1460 mark as a decisive barrier for the pair. Breaking this floor could trigger selling pressure toward the June lows near 1.1350.
If that lower level fails, the pair may extend its decline to 1.1280. Holding this support is therefore essential to prevent a deeper correction in the euro.
Hawkish Fed drives dollar strength
The recent FOMC meeting signaled a stricter stance on inflation than expected. This shift strengthened the US dollar against major rivals, including the euro.
Market participants now price in higher interest rates for longer under Kevin Warsh. This narrative has accelerated the dollar’s rally to a fresh one-year high.
Resistance caps potential euro recovery
Any rebound from 1.1460 faces immediate technical hurdles near 1.1500. Moving averages sit just above the current price, acting as a ceiling for buyers.
CMC Markets notes that the pair must clear these levels to reach 1.1600. Failure to do so suggests the broader downtrend remains intact despite short-term bounces.
