The currency pair consolidates near 1.1400 ahead of Thursday’s ECB decision, with Fed rate hike bets lifting the USD.
EUR/USD trades just above 1.1400 in early Asian trade, remaining below its 200-period Simple Moving Average on the four-hour chart. The pair’s bearish tone follows last week’s rejection near 1.1480-1.1485, a key resistance zone aligned with the 200-SMA.
Market participants are adopting a cautious stance ahead of the European Central Bank’s policy meeting on Thursday. Meanwhile, escalating US-Iran tensions and energy-driven inflation fears have bolstered expectations for further Federal Reserve rate hikes, supporting the USD. Technical indicators, including a negative MACD and an RSI below 50, reinforce the downside bias.
A break below 1.1400 could pave the way for a retest of the year-to-date low near 1.1325, while resistance remains at the 200-SMA around 1.1480.