EUR/USD awaits ECB decision with hawkish expectations supporting euro

EUR/USD trades steady near 1.0820 ahead of the European Central Bank's policy decision, with markets anticipating a potentially hawkish stance from policymakers. The pair has gained 0.2% in early European trading as investors position for the ECB's assessment of eurozone inflation dynamics and growth prospects. Recent eurozone data has shown persistent core inflation above target, increasing pressure on the ECB to maintain restrictive monetary policy. The EUR/CHF cross also remains elevated at 0.9450, reflecting broader euro strength. Technical analysis shows EUR/USD testing resistance at the 50-day moving average (1.0835), with a break above potentially opening the path to 1.0880. Support holds at 1.0780, coinciding with the 200-day moving average. A hawkish ECB surprise could propel the pair toward 1.0900, while any dovish tilt might trigger a retreat to 1.0750.