EUR/USD holds steady at 1.0420 as European markets show mixed signals

EUR/USD traded sideways at 1.0420, fluctuating within a tight 20-pip range as European stock markets displayed mixed performance ahead of crucial US economic data releases. The euro found support from better-than-expected German business confidence data, offsetting concerns about broader European economic growth. Market participants remain cautious, awaiting US durable goods orders and consumer confidence figures that could provide direction for the dollar. Technical indicators suggest consolidation between 1.0400 support and 1.0450 resistance, with low volatility reflecting year-end positioning adjustments. The pair's 50-day moving average at 1.0435 acts as immediate resistance, while the 200-day MA at 1.0380 provides longer-term support. Traders should watch for a breakout from the current range, with US data likely serving as the catalyst for directional movement.