EUR/USD trades lower, nearing 1.0450 in Tuesday’s European session. The major currency pair struggled to maintain its position above the psychological resistance of 1.0500 in past trading days. As the US Dollar Index (DXY) rebounds after hitting a two-month low, the Greenback attracts bids, advancing to about 107.00 at the time of writing. Market participants closely watch the Fed’s policy stance, which influences the dollar’s performance. This change in sentiment indicates a cautious approach among traders.