EUR/USD edges higher as Eurozone sentiment beats expectations

EUR/USD has gained modest ground following the release of better-than-expected Eurozone Sentix investor confidence data for December, which came in at -6.2 versus the -7.0 forecast and improved from November's -7.4 reading. This marks the fourth consecutive monthly improvement in sentiment readings for some regions, suggesting ongoing stabilization in the Eurozone economy despite the overall index remaining in negative territory. The data provides mild support for the euro as investors interpret the trend as a potential bottoming in economic conditions. While the improvement is encouraging, the negative reading still reflects cautious investor sentiment toward Eurozone growth prospects. Near-term resistance for EUR/USD likely sits around 1.0600-1.0650, while support could be found near 1.0500. Traders should monitor upcoming ECB communications and US economic data releases for clearer directional cues, as the pair remains range-bound amid mixed economic signals from both regions.