The EUR/USD pair is currently trading around 1.172, showing little movement as traders await the Federal Reserve’s upcoming stance on interest rate cuts. This period of stagnation highlights the market’s cautious sentiment, with participants holding back on major moves until clarity emerges from central bank policy.

From a technical perspective, the pair appears to have room to test the 1.18 resistance zone in the short term. However, if momentum fails to build, a pullback toward 1.142 or even lower levels remains on the table. Such a scenario would likely depend on external factors, including economic releases, tariff developments, and other global market-moving events.

For traders, this setup suggests a market primed for volatility once new catalysts emerge. Keeping an eye on Fed commentary, economic data, and geopolitical headlines will be crucial in navigating the next moves for EUR/USD.

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