EUR/USD Tests 1.1750 Trendline as DXY Stalls; PCE in Focus
EUR/USD reaffirms support at 1.1728 as traders await the latest jobless claims and PCE data from the US
The dollar is steady near recent highs this morning as traders sit on their hands ahead of U.S. data—weekly jobless claims and the final Q2 GDP print today, then PCE inflation on Friday. The dollar index is trading just below the 97.5 area after being rejected on Wednesday, with EUR and GBP off their lows while JPY is a touch firmer after BoJ minutes showed some openness to further hikes. Markets still price in another 40–45 bps of easing this year, but recent, more cautious Fed rhetoric has dulled the most dovish bets. The outlook remains data-dependent — front-end yields and the PCE print will decide whether the greenback extends its month-to-date gain or slips back into the broader 2025 downtrend.
US Dollar Index (DXY) daily chart
Past performance is not a reliable indicator of future results.
The recent resurgence in the US dollar has pushed EUR/USD back to the ascending trendline acting as support, currently at 1.1754. The bias is still slightly bearish in the short-term, but a soft PCE data could push the pair back above 1.18 if the dollar resumes its downtrend. Immediate support could arise at 1.1728, followed by the 50-day SMA at 1.1678.
EUR/USD daily chart
Past performance is not a reliable indicator of future results.