EUR/USD Tests Critical 1.1835 Support Ahead of Fed Minutes and PCE

EUR/USD is testing a key support level at 1.1835 as traders position ahead of two major US catalysts this week: the Federal Reserve's meeting minutes and the Personal Consumption Expenditures (PCE) price index. The pair has come under pressure as dollar demand increases ahead of these high-impact releases, which could reshape market expectations for the Fed's rate trajectory. The PCE deflator, the Fed's preferred inflation gauge, will be closely scrutinized for signs of persistent price pressures that could delay any easing cycle. A hotter-than-expected PCE reading would likely strengthen the dollar and push EUR/USD below the 1.1835 support, potentially opening the path toward lower levels. Conversely, softer inflation data could reinforce dovish Fed expectations and trigger a relief rally in the euro. From a technical perspective, the 1.1835 level represents a critical inflection point, with a sustained break lower signaling a potential shift in the pair's near-term trend. Traders should exercise caution and manage risk tightly given the event-heavy calendar ahead.