Euro Forecast: Can EUR/USD Break 1.1870 on Fed Rate Cut News?

Hey Traders 👋

We’ve been leaning hard on Bitcoin lately, but today’s spotlight shifts to EUR/USD, because the Fed meeting is the big event on the calendar.📅

The Euro is trading near 1.1850, caught between support and resistance as traders sit tight ahead of the US central bank’s policy decision.

The setup on the chart:

Support: 1.1830 - the floor buyers are defending.

Resistance: 1.1870 - the ceiling sellers keep rejecting.

Upside target: If 1.1870 breaks, 1.1900 is the next big level.

🔍 Downside watch: Lose 1.1830, and price likely leans on the moving averages below (20, 50, and 100-period MAs).

These act like “dynamic” support, as explained in Chapter 4, Lesson 3.

Why it matters:

The Fed announces its rate decision today at 18:00 GMT. Markets expect a 0.25% rate cut, but the real story is what comes next.

If Powell hints at more easing ahead, that could weigh on the Dollar and give EUR/USD room to rally. If the Fed sounds cautious on inflation, the Dollar may bounce, capping the Euro.

One last note: this is high-impact stuff, it moves all markets, not just FX. If you’re new to Forex, check the lessons inside the app for a deeper dive into how central banks shape currency moves.😉

Disclaimer: This is not financial advice. All information is for simulation and educational purposes only.