EUR/USD: Dollar Weakens as September Fed Rate Cut Probability Rises

EUR/USD has strengthened as increased expectations for a September Federal Reserve rate cut weigh on the dollar. Markets are now pricing in a higher probability of a 25 basis point cut at the Fed's September meeting, shifting from previous hawkish expectations. The pair has found support above key moving averages, with technical indicators suggesting bullish momentum building. Economic data divergence between the US and Eurozone continues to influence trading, with recent US indicators showing signs of cooling that support the dovish Fed narrative. Immediate resistance lies at 1.1700, a psychological level that bulls are targeting in the near term. The shift in Fed rate expectations has fundamentally altered the dollar's trajectory, creating opportunities for EUR/USD longs. Traders should monitor upcoming US economic releases, particularly inflation and employment data, which could either reinforce or challenge current rate cut expectations.