EUR/USD targets 1.1100 on ECB-Fed policy convergence expectations

EUR/USD has gained 0.25% to trade at 1.1075, driven by expectations of narrowing policy divergence between the ECB and Federal Reserve. Markets price in a 70% probability of a Fed rate cut in December, while the ECB maintains its hawkish stance with inflation at 2.6%. European economic data shows resilience, with German industrial production rising 0.3% month-over-month. The pair broke above the key 1.1050 resistance level, triggering fresh buying interest. Technical momentum indicators remain bullish, with the 50-day moving average crossing above the 200-day MA. Immediate resistance lies at 1.1100, followed by 1.1150. Support levels are established at 1.1050 and 1.1020. The dollar index weakened 0.2% to 101.50, providing additional tailwind for the euro. Traders anticipate continued euro strength if upcoming US CPI data shows further disinflation.