EUR/USD Awaits Eurozone CPI Data with ECB Policy Impact Limited

EUR/USD is trading in a narrow range ahead of today's Eurozone Flash CPI release, with markets expecting headline inflation to remain steady at 2.1% year-over-year and core CPI unchanged at 2.4%. The data, scheduled for release during the European session, is unlikely to materially impact European Central Bank policy decisions as officials maintain their data-dependent stance while monitoring broader economic developments. Current inflation levels remain above the ECB's 2% target, supporting the central bank's cautious approach to further rate cuts. Technical indicators suggest EUR/USD continues to consolidate within recent ranges, with immediate resistance at 1.0600 and support around 1.0520. Traders should note that while the CPI print may cause short-term volatility, the ECB's well-telegraphed policy stance limits the potential for significant directional moves unless the data substantially deviates from expectations.