EUR/USD Bulls Defend 1.0600 Support as Q4 Rally Prospects Strengthen

EUR/USD maintains its bullish structure above 1.0600, trading at 1.0625 with a 0.2% gain in Monday's session. The pair has successfully defended key support at the 1.0600 psychological level for the third consecutive week, demonstrating underlying strength despite dollar resilience. Technical analysis reveals a potential inverse head and shoulders pattern forming on the daily chart, with neckline resistance at 1.0680. A break above this level could trigger a measured move toward 1.0750. The European Central Bank's hawkish tilt continues to support the euro, with officials signaling rates may stay elevated through early 2024. Meanwhile, softening US economic data and growing expectations for a Fed pause are weighing on dollar strength. Immediate resistance lies at 1.0650 (21-day moving average), while solid support remains at 1.0580 (weekly low). Q4 seasonality historically favors euro strength, and current positioning suggests bulls are preparing for an upside breakout if fundamental catalysts align.