EUR/USD holds neutral stance as Core PCE meets expectations

EUR/USD maintains a cautious tone following the release of US Core PCE inflation data that met market expectations, leaving the pair trapped between opposing forces. The European Central Bank's recent dovish signals continue to cap euro strength, with officials hinting at potential rate cuts amid sluggish economic growth. Meanwhile, uncertainty surrounding US economic policy direction adds volatility to dollar positioning. The neutral Core PCE reading neither accelerated nor decelerated Fed rate cut expectations, keeping the pair in consolidation mode. Technical analysis shows EUR/USD trading within a tight 1.0800-1.0900 range, with neither bulls nor bears gaining decisive control. Immediate support sits at 1.0820, while resistance emerges at 1.0875. Traders should monitor upcoming ECB communications and US labor market data for potential breakout catalysts. The current environment suggests range-trading strategies may be optimal until clearer directional signals emerge.