EUR/USD continues to muddle along ahead of key Fed showing

• EUR/USD found mild technical support from 1.1300 on Tuesday.
• Wednesday's key Fed rate call looms large ahead in the midweek.
• Fed expected to maintain rates, but markets hoping for Fedspeak pivot.

EUR/USD muddled through Tuesday's market action, marking out a fresh near-term consolidation range near the 1.1300 major handle as Fiber traders wait for a reason to move. The Federal Reserve's (Fed) midweek rate call is the key data event this week, keeping investor sentiment chained to its post for the time being.

The Fed's upcoming rate decision on Wednesday remains the primary focus for markets this week. While many expect the Fed to maintain current rates, investors will closely monitor comments from policymakers, especially Fed Chair Jerome Powell, for any indications that a shift towards a rate-cutting cycle might occur sooner than anticipated.

Recently, the Fed has faced mounting pressure to reduce interest rates. Market participants are consistently seeking lower financing costs, while the Trump administration has been notably vocal, insisting that the Fed should lower rates to ease US debt servicing expenses. However, this stance contradicts the Fed's dual mandates of promoting full employment and controlling price stability, points that seem to be overlooked by President Donald Trump.

EUR/USD price forecast

EUR/USD appears to have found an interim bottom just above the 1.1200 handle, with price action bolstered north of the 1.1300 region. Fiber has eased from multi-month highs posted just north of 1.1500, but downside momentum remains limited as Euro traders await key market developments before pushing too hard in either direction.

EUR/USD daily chart