Yesterday's meeting of the Federal Open Market Committee (FOMC) and the subsequent press conference provided key insights into the Federal Reserve's monetary policy. Fed Chair Jerome Powell announced that the federal funds rate would remain in the range of 5.25%-5.5%.

However, Powell's hint at a possible rate cut in September, should inflation and labor market conditions continue to improve, created a dovish outlook for the US dollar.

This shift in sentiment temporarily supported the EUR/USD pair, helping it stay above the critical support level of 1.0800. Despite this, the broader bearish trend for EUR/USD remains, according to Traders Union. The pair has formed a bearish wedge on the four-hour chart, indicating ongoing downward pressure. Moreover, repeated attempts to break through the 1.0800 level suggest weakening support.

Currently, the EUR/USD pair is trading in a narrow range between 1.08450 and 1.08000, with traders awaiting further guidance from upcoming US economic data.