The EUR/USD pair slipped below 1.1800 in Thursday’s US session as traders continued to assess the Federal Reserve’s latest policy decision and incoming economic data.
As expected, the Fed cut rates by 25 basis points, bringing the target range to 4.00–4.25%. The updated dot plot suggested two more cuts by year-end, in line with market pricing. However, policymakers projected only one cut in 2026 and emphasized a cautious approach, signaling that further easing will not be rushed. This slightly more hawkish tone helped the US Dollar recover from its initial dip.
Fresh US data releases added momentum to the Dollar. Initial Jobless Claims came in at 231K, better than the forecast of 240K and below the prior revised 264K. Meanwhile, the Philadelphia Fed Manufacturing Index surprised sharply to the upside at 23.2, compared with -0.3 in August and well above expectations of 2.3.
These upbeat numbers reinforced demand for the Greenback, leaving the Euro under pressure for a second consecutive session.
EUR/USD Technical Outlook
On the daily chart, EUR/USD trades in the red again but remains above all major moving averages, suggesting that the broader bullish trend is intact. The 20-day SMA near 1.1710 is the first key support, followed by the 100-day SMA at 1.1560. Indicators are turning lower but still hold in positive territory, signaling room for a corrective dip.
The 4-hour chart shows price slipping under the 20 SMA around 1.1810, with momentum indicators pointing south inside negative territory. This setup favours further short-term downside, although the 100 and 200 SMAs remain below current levels, keeping medium-term bearish risks limited.
Support levels: 1.1780 • 1.1740 • 1.1705
Resistance levels: 1.1810 • 1.1845 • 1.1890
