Support Zones in Focus as Fed Rate Path Pressures Majors

With the Fed edging closer to a September hike and economists flagging the possibility of further tightening beyond a single move, technical support zones on USD-paired majors are coming under renewed scrutiny. EUR/USD's 1.1604 level exemplifies this dynamic, acting as a critical pivot where dollar strength expectations collide with the pair's existing bullish structure.

A sustained break below such support thresholds would likely trigger momentum-driven follow-through selling, particularly if RSI simultaneously slips under the 50 midline, confirming a shift in short-term bias. Conversely, holding above these levels into the rate decision would reinforce the case for range continuation rather than trend reversal.

Chart watchers should treat the coming sessions as a stress test for prevailing technical structures, with volatility around the policy announcement likely to determine whether current support/resistance zones remain valid reference points.