EUR/USD is defending its 50-period moving average near $1.1418 as the Dollar Index climbs toward $101 before the release of FOMC meeting minutes. Higher lows on the euro point to buyers stepping in on dips, while sticky U.S. inflation keeps the dollar firm.
The euro is holding a line traders have watched closely. EUR/USD is defending the 50-period moving average at $1.1418, building a sequence of higher lows after rejecting the red moving average at $1.162. That structure suggests dip-buyers remain active, though resistance sits in the $1.155-$1.162 band above.
A separate technical read frames the pair as consolidating between $1.1400 and $1.1450 (snippet-based). A break above the July 2 weekly high at $1.1473 could open the way toward $1.1500, while a close under $1.1400 would put support at $1.1325-$1.1355 in play.
Dollar index presses higher into the Fed minutes
The greenback is doing the pushing. The Dollar Index is trading at $101.04 on the 4-hour chart after retesting the Fibonacci 0.618 level at $100.31. Bullish candles show buyers respecting the 50-period exponential moving average at $101.02, with the next upside target projected at $103.09 and a pivot cluster between $100.59 and $101.06.
Sticky core inflation in the U.S. underpins the case, supporting a hawkish Federal Reserve stance that benefits the dollar. Traders now wait on the FOMC meeting minutes.
Sterling tests its trendline
The pound is caught in the same current but holding its own. GBP/USD is trading at $1.3360, testing a descending trendline at $1.3380, with a neutral-to-bullish structure above it and RSI near 57.
Support for sterling is anticipated in the $1.325-$1.331 range, as the currency contends with services inflation pressures at home. The euro, meanwhile, faces heterogeneous eurozone growth.
Sources: FX Empire, Continuum Economics (snippet-based)
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