EUR Holds Steady in Quiet Trade Ahead of North American Session

EUR is trading flat against the US Dollar as markets head into Wednesday’s North American session. Overall trading conditions remain calm, with limited volatility across major currency pairs. The EUR has moved within a narrow range for several months, and recent price action reflects caution driven by geopolitical developments and softer eurozone inflation data.

According to Scotiabank FX strategists Shaun Osborne and Eric Theoret, the latest pullback in the EUR has been modest and does not signal a broader trend shift.

ECB Speakers in Focus as Policy Outlook Remains Neutral

Recent changes in Germany–US yield spreads have slightly reduced the euro’s fundamental support. However, spreads remain close to multi-year highs, helping the EUR avoid deeper losses.

Preliminary euro area CPI data offered little surprise. Headline inflation held steady at 2.0% year-on-year, while core inflation eased slightly to 2.3%, just below expectations. These figures suggest inflation pressures are cooling gradually, without alarming policymakers.

EUR/USD technical analysis and forecast highlights key support and resistance levels, trend direction, and possible breakout scenarios.

The contrast between eurozone-wide data and country-level inflation reports may provide short-term reassurance for investors. Market attention now shifts to comments from European Central Bank officials. ECB policymaker Pereira is scheduled to speak later today, while Chief Economist Philip Lane’s speech on Friday is expected to be the main catalyst.

So far, ECB guidance has remained balanced. Officials continue to signal a neutral stance while maintaining a mildly hawkish bias on the long-term direction of interest rates.

Technical Picture Points to Range-Bound Trading

From a technical standpoint, the broader EUR trading range remains intact. Recent losses have been limited, indicating a lack of strong bearish momentum. The Relative Strength Index (RSI) is hovering near the neutral 50 level, reinforcing the view of a balanced market.

Key near-term support lies around the 50-day moving average at 1.1647. As long as this level holds, EUR/USD is likely to stay range-bound, with traders watching a near-term trading zone between 1.1650 and 1.1750.

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