EUR/USD Holds Above 1.1500, but Downside Risks Remain

EUR/USD remains under pressure after a strong U.S. jobs report. Markets are now pricing in another Fed rate hike by year-end, while upcoming U.S. CPI data could further strengthen the dollar if inflation remains elevated. At the same time, geopolitical tensions in the Middle East and uncertainty around oil prices continue to support safe-haven demand for the greenback.

Attention will also be on the ECB rate decision this week. While the ECB is expected to raise rates by 25 basis points, the euro's direction will likely depend on whether policymakers signal further tightening or adopt a more cautious tone amid slowing growth and energy-related risks.

Technically, EUR/USD is holding above the key 1.1500 support level, but the overall bias remains bearish. A break below 1.1500 could expose the March low near 1.1410, while any recovery would need to clear resistance around 1.1580 to improve the short-term outlook.

EUR/USD Daily Chart