EUR/USD eyes July highs above 1.1800 ahead of critical Fed decision

EUR/USD has broken above 1.1800 for the first time since early July, gaining 0.5% in Monday's session as traders position ahead of the Federal Reserve's policy decision. The pair's rally reflects growing expectations for a dovish Fed pivot, with markets pricing in potential rate cuts amid cooling US economic indicators. Technical analysis shows EUR/USD targeting the significant July highs near 1.1850, with momentum indicators supporting further upside potential. The break above 1.1800 represents a key psychological and technical milestone, opening the path toward the 1.1900-1.2000 resistance zone. Immediate support has formed at 1.1750, with the 50-day moving average providing additional backing at 1.1720. Traders are closely monitoring Fed communication for any shift in monetary policy stance, which could either accelerate euro gains or trigger profit-taking if the Fed maintains its hawkish rhetoric.