Analysts warn the Euro’s rebound against the Dollar may stall near 1.1560 due to technical resistance and data-dependent Fed policy.
The Euro has recovered from mid-June lows against the US Dollar, supported by reduced expectations for further Federal Reserve rate hikes. EUR/USD now approaches a critical technical resistance level at 1.1560, testing the sustainability of recent gains.
Institutional analysts highlight diverging views on the pair’s trajectory. Commerzbank downgraded its EUR/USD forecasts by two cents, citing rising Fed rate hike risks, while UOB Group targets 1.1622 if resistance clears. Downside support is seen at 1.1470 and 1.1445.
The Fed’s shift to data-dependent policy, with limited forward guidance, leaves the Dollar vulnerable to inflation and labor market surprises. This dynamic adds uncertainty to the Euro’s near-term outlook.