The pair retreats for a second day as US rate hike expectations rise amid inflation concerns and US-Iran tensions.
The EUR/USD pair extended losses for a second session, trading near 1.1435 as renewed US Federal Reserve rate hike bets and escalating US-Iran tensions bolstered the USD. Selling pressure remains cautious, with spot prices holding above key support levels after Wednesday’s four-week high pullback.
Technical indicators show momentum stalling near the 200-period Simple Moving Average (SMA) on the 4-hour chart, with the RSI near neutral and the MACD turning slightly negative. Immediate resistance lies at 1.1477 (200-SMA), while support is anchored at 1.1330, aligning with the latest swing low and Fibonacci retracement level.
A sustained break above 1.1477 could target higher Fibonacci levels at 1.1563 and 1.1618, though bullish momentum appears constrained for now.