EUR/USD tests 1.1500 support amid divided ECB and cautious Fed outlook

EUR/USD edged lower to test the psychologically important 1.1500 support level as markets weigh a divided European Central Bank against a cautious Federal Reserve. The pair faces downward pressure from dollar strength and uncertainty over ECB policy direction, with governing council members showing disagreement on the pace of future rate adjustments. The Fed's cautious stance reflects concerns about persistent inflation and economic resilience, supporting the dollar's bid tone. Technical analysis shows 1.1500 as a critical support level, with a break below potentially accelerating declines toward 1.1450 and the 200-day moving average. Resistance sits at 1.1550, coinciding with recent highs. The divided ECB creates additional headwinds for the euro, as markets struggle to price future policy moves amid conflicting signals from policymakers. Traders should watch for any clarity from ECB officials and US economic data that could shift the current dynamics supporting dollar strength.