Stronger USD demand follows higher US inflation data and stalled US-Iran talks, capping the pair near mid-1.1700s.
The EUR/USD pair traded in a tight range below the mid-1.1700s during the Asian session, reflecting investor caution ahead of a US-China presidential meeting. Hotter-than-expected US consumer inflation figures on Tuesday bolstered expectations for a Federal Reserve rate hike in 2026, supporting the USD.
Geopolitical risks also weighed on the pair, as fading prospects for a US-Iran peace deal over nuclear disputes and the Strait of Hormuz kept the greenback underpinned. Technically, the pair remains above its 200-period SMA on the 4-hour chart, though momentum indicators suggest weakening upside traction.
Traders await a clear break below the 1.1715 support zone to confirm further downside potential.