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Daily outlookArticle · 3 minNeutral

EUR/USD holds 1.16 as the ECB and the Fed both tighten

· EURUSD · FXpips research desk

The ECB raised its deposit rate to 2.5% last Thursday, its second hike since the Iran conflict began. With the Fed expected to follow on Wednesday, both sides are tightening — which keeps EUR/USD pinned around 1.16 until the Fed’s projections land.

What’s driving it

  • ECB hiked 25bp on 10 September; deposit rate now 2.5%
  • FOMC decision and projections on Wednesday
  • Eurozone final CPI on Thursday

Key levels

Resistance

1.16501.1720

Support

1.15401.1480

Scenarios

Bullish caseSofter Fed projections and a daily close above 1.1650 target 1.1720.
Bearish caseA hawkish dot plot and a break of 1.1540 open 1.1480.

General market commentary for education, not personal advice. Levels can shift quickly around news.

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