EUR/USD consolidates in mid-1.15s, supported by yield spreads and quiet ECB calendar, with technicals signaling fading bullish momentum.
The Euro remains steady against the US Dollar, trading in a tight range around 1.1550 as consolidation extends following the Dollar’s late-July decline driven by Federal Reserve policy expectations. EUR/USD aligns closely with fair value estimates based on 2-year Germany-US yield spreads, currently at 1.1563.
Recent price action shows a moderation in spread-driven movements, while sentiment correlations, measured by risk reversals, have strengthened. The pair’s bullish momentum has decelerated, with the relative strength index (RSI) drifting into the upper 50s, though a marginal uptrend persists with higher highs and lows.
Resistance is seen near 1.1580, with additional barriers at 1.1600 and the 200-day moving average at 1.1630. Support lies at the 50-day moving average at 1.1468, with a near-term range expected between 1.1500 and 1.1580.