EUR/USD fell below the 1.08 level on Tuesday as the U.S. dollar remained firm near multi-month highs, even after U.S. consumer confidence and manufacturing activity came in softer than expected. Investors had hoped the weak figures would bolster the case for Federal Reserve rate cuts and ease dollar strength, but the reaction was muted as traders weighed the relative resilience of the U.S. economy against sluggish eurozone growth. The European Central Bank has signaled a more accommodative stance than the Fed, with policymakers hinting at potential rate cuts later this year, while the Fed has stressed it needs more evidence that inflation is moving sustainably toward its 2% target before easing. That interest-rate differential, together with fiscal concerns in France and Germany’s economic slowdown, has kept the euro under pressure. Technically, EUR/USD is testing support around 1.0780–1.0800, with a break potentially opening 1.0700 and resistance seen at 1.0850 and 1.0900. Upcoming U.S. jobs data and eurozone inflation figures are the next key catalysts.