The post EUR/USD rises above 1.1600, flirts with 200-day SMA on USD weakness appeared on BitcoinEthereumNews.com.

The EUR/USD pair regains positive traction at the start of a new week and climbs back above the 1.1600 round figure during the Asian session. Bulls now await a move beyond a technically significant 200-day Simple Moving Average (SMA) before placing fresh bets and positioning for an extension of a one-week-old uptrend amid the prevalent US Dollar (USD) selling bias. The USD Index (DXY), which tracks the Greenback against a basket of currencies, languishes near a two-week low on the back of dovish Federal Reserve (Fed) expectations. In fact, traders ramped up their bets that the US central bank will lower borrowing costs again in December in the wake of the recent comments from several Fed officials. This, along with the underlying bullish sentiment around the financial markets, is seen undermining the safe-haven buck and acting as a tailwind for the EUR/USD pair. The shared currency, on the other hand, continues to draw support from the growing acceptance that the European Central Bank (ECB) is done cutting interest rates. In fact, the latest ECB meeting minutes released on Friday showed unanimous backing for leaving all three key policy rates unchanged in October. Moreover, the Governing Council described the policy stance as being in a good place. Traders have now almost fully priced out any additional rate cut in 2025and see around a 40% chance of a move by the end of 2026. This, in turn, lends additional support to the EUR/USD pair and backs the case for a further appreciating move in the near term. A sustained break through the very important 200-day SMA will reaffirm the constructive outlook and pave the way for further gains. Traders now look forward to this week’s important US macro data, scheduled at the beginning of a new month, starting with the ISM Manufacturing…

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Filed under: News - @ December 1, 2025 2:23 am