EUR/USD forecast: After the Fed rate cut, can Euro extend the breakout?

EUR/USD surged to fresh multi-week highs after the Fed delivered its widely expected rate cut, weakening the U.S. dollar.
Powell’s guidance leaned dovish, signaling room for additional easing in 2026, accelerating USD downside pressure.
Technical outlook shows a clean bullish FVG, with continuation possible—but a pullback into the imbalance remains a probable setup before trend continuation.

EUR/USD extends higher after the Fed cut: Dollar weakens as markets reprice 2026 path

EUR/USD traded sharply higher following the Federal Reserve’s December rate cut, a move that financial markets had largely priced in—but the reaction shows that the tone of Powell’s press conference carried even more weight.