The European Central Bank (ECB) and the US Federal Reserve (Fed) keep following different policy paths, shaping their unique ways to economic management. As of October 2025, this split remains the dominant narrative for the EURUSD pair.
On the American side, the Fed looks set to continue its rate-cutting cycle it began earlier this year. Such a move is driven by a cooling job market, ongoing concerns about the labor sector, and inflation that is coming under control. The idea of lower borrowing costs is now making the US dollar less attractive to investors.
Across the Atlantic, the ECB is playing it much more cautiously. With eurozone inflation holding steady around its target, officials are in no rush to cut interest rates. This patient approach from the regulator is giving the euro a solid foundation.
Therefore, this policy divergence still undermines the greenback and bolsters the single currency.
From a technical standpoint, the EURUSD pair is closing in on the 1.15380 support, which has proven to be a resilient floor. A subsequent approach to this level, backed by the underlying case for euro strength, could provide a favorable setup to open a position with the pair, aiming for 1.1750.
The ultimate recommendation is to buy EURUSD from 1.15380. Profits are taken at 1.17500. Stop loss is placed at 1.14300.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
