EUR/USD EDGES LOWER TOWARD 1.1400 ZONE DESPITE BULLISH TREND STRUCTURE

EUR/USD EDGES LOWER TOWARD 1.1400 ZONE DESPITE BULLISH TREND STRUCTURE

The EUR/USD currency pair experienced a modest decline on Wednesday, April 23, 2025, retreating toward the 1.1400 support zone.

While this pullback represents a minor correction within an overall bullish trend, it highlights ongoing market consolidation rather than a definitive trend reversal.​

Despite the recent dip, EUR/USD remains within a healthy daily range between 1.1307 and 1.1440, indicating consolidation rather than a trend reversal.

This behavior suggests that the pair is pausing before potentially resuming its upward trajectory.

The European Central Bank (ECB) has indicated a gradual approach to policy easing, with officials expressing confidence that inflation will return to target in the first half of 2025.

This stance supports the euro, as market participants anticipate a measured reduction in interest rates.

The US dollar's performance remains a critical factor for EUR/USD.

While the dollar has shown strength due to expectations of prolonged elevated interest rates by the Federal Reserve, recent mixed economic data have introduced some uncertainty, leading to fluctuations in the dollar's value.

Technical analysis reveals that the EUR/USD pair is trading above its key moving averages, maintaining a bullish outlook.

the recent dip suggests a potential short-term correction, with the 1.1400 level acting as immediate support.