The currency pair falls for a fourth day as the US Dollar rallies on improved US-China trade relations and Fed rate cut expectations fade.
EUR/USD declined 0.15% to 1.1653 in Asian trading, extending its losing streak to four sessions. The move follows a breakdown below the key 1.1655 level, signaling a bearish near-term bias for the pair.
The US Dollar Index (DXY) rose 0.15% to 99.00, its highest level in two weeks, supported by optimism after US President Trump and Chinese leader Xi Jinping signaled improved trade relations. Expectations that the Federal Reserve will hold rates steady this year also bolstered the USD.
In contrast, a Reuters poll showed most economists expect the European Central Bank to hike rates in June. However, the EUR remains under pressure as technical indicators point to further downside, with the pair trading below its 20-day EMA at 1.1710.