EUR/USD Consolidates to Continue Bullish TrendEUR/USDOANDA:EURUSDNouzTraderEUR/USD EURUSD has entered a bullish consolidation phase. The Euro's sharp rise is underpinned by a sell-off in the US Dollar (USD) following a slump in US bond yields. ----------------------------------------------------------------------------------------------------------- ✅ Transatlantic Monetary Divergence: US Treasury Debt Buybacks vs. Expectations of ECB Tightening in September (+25 bps) Bond markets and yield differentials are the primary drivers of the Euro's movement: - ⚡US Treasury Intervention (Long-Term Debt Buybacks): The US Treasury provided massive relief to the bond market by announcing plans to at least double its buyback operations for long-term government debt, starting in September 2026. This announcement sent Treasury yields tumbling to three-month lows, weighing on the US Dollar and triggering a sharp rally in EUR/USD—the pair's strongest in over three weeks. - ⚡Hawkish FOMC Meeting Minutes: However, the USD's decline was limited by the release of the FOMC meeting minutes (July 28–29), which revealed that Fed officials deemed an interest rate hike necessary if inflation failed to show sustained progress. - ⚡Resilient Bets on an ECB Rate Hike (+25 bps): The Euro received a strong fundamental boost from growing expectations that the European Central Bank (ECB) will implement a 25-basis-point (bp) rate hike at its September meeting. The ECB's tight policy stance, aimed at curbing Eurozone inflation, provides a key pillar of support for the continued upward trend in EUR/USD. ----------------------------------------------------------------------------------------------------------- ✅ 4-Hour (H4) Chart Technical Analysis From a technical perspective on the 4-hour (H4) chart, EUR/USD is confirming a bullish consolidation pattern near three-month highs, poised for a breakout above the psychological 1.1700 level: - ⚡Bullish Consolidation Pattern: The price action structure hovering tightly near the 1.1680–1.1700 range indicates an accumulation of buying pressure (bullish absorption). A clean breakout and an H4 candle close above 1.1700 would confirm the continuation of the rally toward the next major target at 1.1750. - ⚡1.1620 Support Resilience: The downside is anchored by the H4 20-period EMA around the 1.1620 level. As long as the spot price holds above 1.1620, the short-term technical bias for EUR/USD remains firmly controlled by the bulls.