EUR/USD Struggles Above 1.1600 Ahead of FOMC and ECB Decisions

EUR/USD remains range-bound near 1.1600, showing limited conviction as traders await pivotal central bank meetings this week. The pair has gained a modest 0.15% to 1.1605 but faces resistance at the 1.1650 level, which has capped advances for three consecutive sessions. Markets are pricing in a 25 basis point rate cut from the ECB on Thursday, while the Federal Reserve is expected to maintain rates at 5.25-5.50%. Recent Eurozone inflation data showing core CPI at 2.7% supports ECB easing expectations, while robust US labor market conditions favor Fed patience. Technical indicators reveal neutral momentum, with the 50-day moving average at 1.1580 providing near-term support. A decisive break above 1.1650 could target 1.1700, while failure to hold 1.1550 might trigger a retest of 1.1500. Volatility is expected to spike post-announcements, offering potential breakout opportunities.