EUR/USD Consolidates at 1.0560 Ahead of Eurozone Inflation Data

EUR/USD trades in a tight range near 1.0560 during Monday's European session, maintaining its multi-week consolidation pattern as traders await Tuesday's crucial Eurozone inflation data. The pair shows limited movement, trading within a 20-pip range as markets position cautiously ahead of the November CPI release, expected to show inflation rising to 2.3% year-over-year from 2.0% previously. The European Central Bank's recent dovish pivot continues to cap euro gains, with markets pricing in 100 basis points of rate cuts through 2025. Technical indicators suggest continued consolidation, with immediate resistance at 1.0600 and solid support at 1.0500. The 50-day moving average at 1.0580 acts as a pivot point, with price action remaining constrained by declining trading volumes. A decisive break above 1.0600 could target 1.0670, while failure to hold 1.0500 support may accelerate declines toward 1.0450.