{"id":49219,"date":"2026-06-18T08:09:18","date_gmt":"2026-06-18T08:09:18","guid":{"rendered":"https:\/\/www.vtmarkets.com\/in\/uncategorized\/eurusd-recovers-as-dollar-rally-pauses-after-fed-shock\/"},"modified":"2026-06-18T08:09:18","modified_gmt":"2026-06-18T08:09:18","slug":"eurusd-recovers-as-dollar-rally-pauses-after-fed-shock","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-mena\/analysis\/eurusd-recovers-as-dollar-rally-pauses-after-fed-shock\/","title":{"rendered":"EURUSD Recovers as Dollar Rally Pauses After Fed Shock"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-mena\/wp-content\/uploads\/sites\/7\/2026\/06\/Euro5-1-1024x573.webp\" alt=\"\" class=\"wp-image-45970\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EURUSD traded near <strong>1.1523<\/strong>, recovering from a low around <strong>1.1478<\/strong> after touching a two-month low earlier.<\/li>\n\n\n\n<li>The US dollar held near a more than two-month high after the Fed kept rates steady but signalled stronger rate-hike risk.<\/li>\n\n\n\n<li>Traders are watching <strong>1.1547 resistance<\/strong> and <strong>1.1519 support<\/strong> as the next short-term range.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>EURUSD edged higher on Thursday after falling sharply in the previous session, as traders weighed a hawkish Federal Reserve hold against softer oil prices and a signed US-Iran interim deal.<\/p>\n\n\n\n<p>The Federal Reserve kept rates unchanged in the <strong>3.50% to 3.75%<\/strong> range, but nearly half of policymakers now expect another rate hike this year. That pushed Fed funds futures to price an <strong>85%<\/strong> chance of tightening in December, giving the dollar a strong boost.<\/p>\n\n\n\n<p>The dollar index held near <strong>100.24<\/strong> after surging <strong>0.85%<\/strong> in the previous session, its biggest one-day jump in more than three months. EURUSD recovered slightly to trade around <strong>1.1523<\/strong>, but the pair remains below the earlier swing high near <strong>1.1615<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Traders Are Watching This<\/h2>\n\n\n\n<p>Traders are watching EURUSD because the pair is caught between hawkish Fed pricing and cautious relief from lower oil prices.<\/p>\n\n\n\n<p>The dollar remains supported by expectations that the Fed may still raise rates later this year. A strong US retail sales reading added to that view, while new Fed Chair Kevin Warsh opened his term with a broad policy review and a more inflation-sensitive tone.<\/p>\n\n\n\n<p>At the same time, oil prices eased after the US and Iran signed an interim agreement aimed at ending the war, reopening the Strait of Hormuz, and waiving US sanctions on Tehran\u2019s oil. Lower oil prices can reduce inflation pressure, which may limit how far the dollar can extend its rally.<\/p>\n\n\n\n<p>The euro also has some support after the European Central Bank recently raised rates, but EURUSD needs a stronger break above resistance before buyers regain control.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Trading Levels<\/h2>\n\n\n\n<!-- TradingView Widget BEGIN -->\n<div class=\"tradingview-widget-container\">\n  <div class=\"tradingview-widget-container__widget\"><\/div>\n  <div class=\"tradingview-widget-copyright\"><a href=\"https:\/\/www.tradingview.com\/symbols\/EURUSD\/?exchange=OANDA\" rel=\"noopener nofollow\" target=\"_blank\"><span class=\"blue-text\">EURUSD chart<\/span><\/a><span class=\"trademark\"> by TradingView<\/span><\/div>\n  <script type=\"text\/javascript\" src=\"https:\/\/s3.tradingview.com\/external-embedding\/embed-widget-advanced-chart.js\" async>\n  {\n  \"allow_symbol_change\": true,\n  \"calendar\": false,\n  \"details\": false,\n  \"hide_side_toolbar\": true,\n  \"hide_top_toolbar\": false,\n  \"hide_legend\": false,\n  \"hide_volume\": false,\n  \"hotlist\": false,\n  \"interval\": \"D\",\n  \"locale\": \"en\",\n  \"save_image\": true,\n  \"style\": \"1\",\n  \"symbol\": \"OANDA:EURUSD\",\n  \"theme\": \"dark\",\n  \"timezone\": \"Etc\/UTC\",\n  \"backgroundColor\": \"#0F0F0F\",\n  \"gridColor\": \"rgba(242, 242, 242, 0.06)\",\n  \"watchlist\": [],\n  \"withdateranges\": false,\n  \"compareSymbols\": [],\n  \"studies\": [],\n  \"width\": 980,\n  \"height\": 610\n}\n  <\/script>\n<\/div>\n<!-- TradingView Widget END -->\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Level<\/strong><\/td><td><strong>What Traders Are Watching<\/strong><\/td><\/tr><tr><td>1.1615<\/td><td>Previous upper swing and wider recovery level<\/td><\/tr><tr><td>1.1588<\/td><td>Stronger resistance from the chart<\/td><\/tr><tr><td>1.1547<\/td><td>Immediate recovery resistance<\/td><\/tr><tr><td>1.1523<\/td><td>Current trade zone<\/td><\/tr><tr><td>1.1523<\/td><td>5-period moving average<\/td><\/tr><tr><td>1.1522<\/td><td>10-period moving average<\/td><\/tr><tr><td>1.1519<\/td><td>20-period moving average and short-term support<\/td><\/tr><tr><td>1.1506<\/td><td>Lower range support<\/td><\/tr><tr><td>1.1478<\/td><td>Recent low and key downside level<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>EURUSD is trading close to its short-term moving averages, with the <strong>5-period MA at 1.15231<\/strong>, the <strong>10-period MA at 1.15218<\/strong>, and the <strong>20-period MA at 1.15188<\/strong>.<\/p>\n\n\n\n<p>That shows the pair is trying to stabilise after the sharp drop. However, the recovery remains modest, and price still needs to break above <strong>1.1547<\/strong> to show stronger upside momentum.<\/p>\n\n\n\n<p>A move below <strong>1.1519<\/strong> would weaken the rebound and bring <strong>1.1506<\/strong> back into focus. A deeper break below <strong>1.1478<\/strong> would put sellers firmly back in control.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bullish and Bearish Setups<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-mena\/wp-content\/uploads\/sites\/7\/2026\/06\/image-17-1024x457.jpg\" alt=\"\" class=\"wp-image-52765\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Setup<\/strong><\/td><td><strong>Trigger<\/strong><\/td><td><strong>Potential Market Reaction<\/strong><\/td><\/tr><tr><td>Bullish Recovery<\/td><td>Move above 1.1547<\/td><td>Buyers may target 1.1588<\/td><\/tr><tr><td>Breakout Setup<\/td><td>Move above 1.1588<\/td><td>Momentum may extend toward 1.1615<\/td><\/tr><tr><td>Pullback Setup<\/td><td>Hold above 1.1519<\/td><td>Traders may watch for short-term stabilisation<\/td><\/tr><tr><td>Bearish Break<\/td><td>Move below 1.1506<\/td><td>Sellers may target 1.1478<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The bullish setup depends on EURUSD holding above the moving average cluster and breaking <strong>1.1547<\/strong>. That would show buyers are gaining confidence after the post-Fed sell-off.<\/p>\n\n\n\n<p>The stronger breakout setup needs a move above <strong>1.1588<\/strong>. If buyers clear that area, the wider recovery zone near <strong>1.1615<\/strong> comes back into focus.<\/p>\n\n\n\n<p>The bearish setup builds if EURUSD falls below <strong>1.1506<\/strong>. A move under that level would suggest the dollar is regaining control and could push the pair back toward <strong>1.1478<\/strong>.<\/p>\n\n\n\n<p><strong>Disclaimer<\/strong><\/p>\n\n\n\n<p><em>The price levels and trade scenarios above reflect the author\u2019s view at the time of writing and do not represent financial advice or an official recommendation from VT Markets. Traders should conduct their own analysis and manage risk carefully.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Trade EURUSD CFDs With VT Markets<\/h2>\n\n\n\n<p>EURUSD remains active when Fed policy, ECB rates, US inflation, oil prices, and global risk sentiment move together.<\/p>\n\n\n\n<p>With VT Markets, traders can access EURUSD CFDs alongside other major forex pairs, gold, oil, indices, shares, ETFs, and global CFD markets from one platform. This helps traders follow euro-dollar price action while also tracking related moves in USDX, GBPUSD, AUDUSD, XAUUSD, and crude oil.<\/p>\n\n\n\n<p>Use VT Markets\u2019 charting tools to monitor support, resistance, moving averages, and breakout behaviour as the next EURUSD setup develops.<\/p>\n\n\n\n<p><strong>Start trading <a href=\"https:\/\/www.vtmarkets.com\/forex\/?utm_source=DMA\" target=\"_blank\" rel=\"noreferrer noopener\">AUD\/USD CFDs<\/a> with <a href=\"https:\/\/www.vtmarkets.com\/Insights\/?utm_source=DMA\" target=\"_blank\" rel=\"noreferrer noopener\">VT Markets<\/a> today.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Trade EURUSD as a CFD?<\/h2>\n\n\n\n<p>EURUSD CFDs allow traders to take a view on rising or falling euro-dollar moves without owning the underlying currencies.<\/p>\n\n\n\n<p>That flexibility can be useful when the pair reacts quickly to Fed decisions, ECB guidance, inflation data, oil moves, and dollar strength. If EURUSD breaks above resistance, traders can watch recovery setups. If the dollar rally resumes, traders can monitor downside continuation.<\/p>\n\n\n\n<p>With VT Markets, traders can follow EURUSD price action in real time and compare it with other major CFD markets from one account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What To Watch Next<\/h2>\n\n\n\n<p>Traders should watch <strong>1.1547<\/strong> resistance and <strong>1.1519<\/strong> support.<\/p>\n\n\n\n<p>A break above <strong>1.1547<\/strong> could support a recovery toward <strong>1.1588<\/strong>. A move below <strong>1.1519<\/strong> would weaken the short-term setup and shift attention back toward <strong>1.1506<\/strong> and <strong>1.1478<\/strong>.<\/p>\n\n\n\n<p>Beyond the chart, the next drivers are Fed rate-hike expectations, US retail sales momentum, ECB policy signals, oil price movement, and whether the US-Iran deal reduces inflation pressure enough to slow dollar demand.<\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>FAQs<\/strong><\/summary>\n<p><strong>Why Is EURUSD Recovering Today?<\/strong><\/p>\n\n\n\n<p>EURUSD is recovering as the dollar rally pauses after a sharp post-Fed move. Softer oil prices after the US-Iran interim deal also helped ease some inflation pressure.<\/p>\n\n\n\n<p><strong>What Is the Key Level to Watch for EURUSD?<\/strong><\/p>\n\n\n\n<p>The key upside level is <strong>1.1547<\/strong>. A break above this area could support a move toward <strong>1.1588<\/strong>. On the downside, <strong>1.1519<\/strong> is the first short-term support level.<\/p>\n\n\n\n<p><strong>Can EURUSD Continue Higher?<\/strong><\/p>\n\n\n\n<p>EURUSD could continue higher if buyers hold above <strong>1.1519<\/strong> and push price above <strong>1.1547<\/strong>. A stronger rebound would need a break above <strong>1.1588<\/strong>.<\/p>\n\n\n\n<p><strong>What Could Push EURUSD Lower?<\/strong><\/p>\n\n\n\n<p>EURUSD could move lower if Fed rate-hike expectations strengthen, the dollar index extends its rally, or US data remains firm. A break below <strong>1.1506<\/strong> would increase downside pressure.<\/p>\n\n\n\n<p><strong>Can I Trade EURUSD With VT Markets?<\/strong><\/p>\n\n\n\n<p>Yes. VT Markets offers access to EURUSD CFDs, allowing traders to take a view on rising or falling euro-dollar moves without owning the underlying currencies. Traders can also access forex, gold, oil, indices, shares, ETFs, and other CFD markets from one platform.<\/p>\n<\/details>\n\n<p>\n\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarkets.com\/in\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>EURUSD analysis: Euro rebounds from two-month lows as the dollar pauses after a hawkish Fed hold. Watch key levels and trade forex CFDs with VT Markets.<\/p>\n","protected":false},"author":87,"featured_media":49218,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-49219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/posts\/49219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/users\/87"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/comments?post=49219"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/posts\/49219\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/media\/49218"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/media?parent=49219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/categories?post=49219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/tags?post=49219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}