The EUR/USD pair remained under sustained selling pressure during Wednesday’s session, sliding toward 1.1450 as bearish momentum drove the exchange rate to test the lower Bollinger Band support on the daily chart. The decline extends a recent downtrend, with a stronger US dollar and a widening monetary policy gap between the Federal Reserve and the European Central Bank anchoring the move.
Technical analysis showed the lower Bollinger Band near 1.1440 under threat—a break below on a daily close would accelerate bearish momentum toward the 1.1380 support. The 20-day moving average (middle band) is sloping lower near 1.1580, while the RSI below 40 and expanding red MACD histogram bars confirm building downside pressure.
Fundamentally, resilient US jobless claims and manufacturing PMI data have tempered expectations for near-term Fed rate cuts, while the eurozone’s sluggish growth and the ECB’s cautious policy normalization stance keep the single currency vulnerable. Market pricing reflects a 60% probability of an ECB rate cut in June, versus a Fed expected to hold rates steady through Q3, reinforcing dollar demand.
Danske Bank’s analysis echoed this narrative, warning that without a hawkish pivot from the Fed or a surprise improvement in eurozone data, the euro will likely remain under pressure. For businesses and traders, the strong dollar raises hedging costs and could dampen risk appetite more broadly.
