EUR/USD Under Pressure as Stronger Dollar and Rate Outlook Weigh on Price

EUR/USD has moved lower below 1.1500 as the US dollar strengthens, mainly due to rising oil prices linked to the Iran conflict. Higher energy prices have increased inflation concerns, making markets expect fewer Federal Reserve rate cuts.

The Fed is widely expected to keep interest rates unchanged this week, but analysts now expect any rate cuts to come later, likely in September and December instead of earlier in the year.

On the euro side, the ECB is also expected to hold rates steady. However, some policymakers have hinted that a rate hike could come sooner than expected.

Overall, shifting rate expectations and rising inflation risks are supporting the US dollar and keeping EUR/USD under pressure.

Technically, 1.1500 is now resistance. A move above it may lead to a short-term pullback, which traders could use as a selling opportunity. The overall EUR/USD trend remains bearish.

EUR/USD Daily Chart