EUR/USD consolidates near 1.0420 post-ECB policy decision

EUR/USD is trading in a tight range around 1.0420, showing limited reaction to the European Central Bank's latest policy stance. The pair gained a modest 0.1% during the session but remains capped below the 1.0450 resistance level. The ECB maintained its current policy framework while acknowledging persistent economic challenges in the eurozone. Market participants are digesting mixed signals from ECB officials regarding the pace of future rate adjustments, creating uncertainty about monetary policy trajectory. Technical indicators suggest neutral momentum, with the pair trapped between 1.0400 support and 1.0450 resistance. The 200-day moving average at 1.0435 is acting as a pivot point. Traders await Friday's eurozone PMI data for clearer direction, with manufacturing sector performance crucial for EUR sentiment. A break above 1.0450 could target 1.0480, while failure at support may accelerate declines toward 1.0370.