EUR/USD Advances Ahead of ECB Policy Decision

The euro edged higher against the US dollar on Thursday, with EUR/USD trading near 1.1410 as investors awaited the European Central Bank's latest policy decision. Markets widely expect the ECB to leave interest rates unchanged, with traders instead focusing on President Christine Lagarde's guidance for the remainder of the year.

The euro has found modest support ahead of the meeting, but lingering demand for the US dollar and cautious market sentiment continue to limit the pair's upside.

EUR/USD remains below the key 200-period SMA, keeping the broader technical outlook tilted to the downside.

The pair failed to sustain last week's rally near 1.1480, where the 200-period Simple Moving Average continues to act as strong resistance.

Momentum indicators also remain cautious, with the RSI holding below the 50 mark while the MACD stays in negative territory, suggesting buying momentum has yet to fully recover.

If EUR/USD slips below 1.1400, selling pressure could accelerate toward this year's low around 1.1325. On the upside, a sustained break above 1.1480 would be needed to ease the current bearish bias and improve the medium-term outlook.

For now, the ECB's policy decision and President Lagarde's comments are likely to determine whether EUR/USD can regain momentum or extend its recent downtrend.