EUR/USD Bulls Hold Steady at 1.175 Amid Powell's Cautious Fed Signals: Buy Dips to 1.1835

Following the Fed Chairman's careful words yesterday, EUR/USD shed most of its gains. Yesterday, it fell to 1.17280; presently, it is trading about 1.17511. Intraday trend is still bullish as long as support 1.1660 holds.

Speaking at the Greater Providence Chamber of Commerce on September 23, 2025, Federal Reserve Chair Jerome Powell described a complicated economic scene in which the Fed faces two-sided risks of increasing inflation and a deteriorating labor market; recent job growth averages just 25,000 per month, and tariff-induced inflation pressures threaten the 2% target. Powell defended the recent 25-basis-point rate reduction to 4.00%-4.25%, with two more predicted for 2025, by acknowledging a "low-fire, low-hire economy" and no longer "solid" employment conditions. warning that extreme aggressive easing may need policy reversals and that extended harsh measures risk more job market harm. Powell said the present "modestly restrictive" stance is under political pressure from President Trump for quicker cuts and his term ending in May 2026. adaptable to changing data, highlighting the Fed's careful approach to balancing a politically charged environment, tariff-driven price increases, and economic resiliency.

The CME Fed watch tool gives the October meeting a 91.9% chance of a 25bpbs rate cut.

The pair is holding below the 55 EMA, above the 200 EMA, and above the 365 EMA in the 4-hour chart. Near-term resistance is seen at 1.17650; a break above this may push the pair to targets of 1.1800/1.1835/1.1850/1.1920. On the downside, support is seen at 1.1720; any violation below will drag the pair to 1.1700/1.1660/1.15750/1.1545/1.1480/1.1435.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)-  Bearish

Average Directional Movement Index (ADX) - Neutral

 It is good to buy on dips around 1.1700 with a stop-loss at 1.1660 for a target price of 1.1835.