EURUSD trades turn their eyes towards upcoming Fed Interest rateEuro/US DollarFX:EURUSDBlueberryEUR/USD has been trading sideways after peaking above 1.1600 last week, as traders adopt a wait and see approach ahead of the Fed's interest rate decision due tomorrow morning (AEST). The pair is consolidating within a tight range, with the top end of the recent rally now being questioned amid growing uncertainty. While the Fed is widely expected to leave its benchmark interest rate unchanged at 4.25%-4.50%, market participants will be closely watching for any revisions to the dot plot, as well as updates to the central bank's growth and inflation forecasts. The current projections suggest two rate cuts in 2025, but any deviation from that could trigger significant dollar volatility. On the technical side, multi-year support near 1.1215 remains a critical level to watch on the downside. A break below could signal deeper bearish momentum. Adding complexity to the EUR side of the equation are two key factors: The ECB’s rate path, with the central bank seen approaching the end of its monetary easing cycle. Elevated geopolitical tensions, especially as Israel prepares further action against Tehran and the US weighs deeper involvement. Any escalation in Middle East tensions could boost demand for safe-haven assets like the US dollar, potentially pressuring the euro further. In the near term, EUR/USD remains in a holding pattern, with the Fed's tone and geopolitical developments likely to determine the next directional move. "The forecasts provided herein are intended for informational purposes only and should not be construed as guarantees of future performance. This is an example only to enhance a consumer's understanding of the strategy being described above and is not to be taken as Blueberry Markets providing personal advice."