EUR/USD Tests 1.1700 Resistance: Critical Breakout Level in Focus

EUR/USD is challenging the crucial 1.1700 resistance level, marking a significant technical test that could determine the pair's near-term direction. The euro has gained momentum against the dollar, driven by improving Eurozone economic sentiment and expectations of continued ECB policy normalization. The 1.1700 level represents a key psychological barrier and previous support-turned-resistance from earlier trading periods. Technical indicators suggest increasing bullish pressure, with the RSI approaching overbought territory at 68. A decisive break above 1.1700 could open the path toward 1.1750 and potentially 1.1800, while failure to breach this level may trigger a pullback to support at 1.1650. Traders are closely monitoring upcoming Eurozone inflation data and any shifts in Federal Reserve rhetoric that could impact dollar strength. The current setup presents a critical inflection point for EUR/USD positioning.