EUR/USD consolidates near 1.0250 ahead of pivotal US inflation data

EUR/USD remains range-bound between 1.0230-1.0270, trading at 1.0252 as markets adopt a wait-and-see approach before Wednesday's crucial US CPI release. The pair has entered a consolidation phase after last week's 1.2% decline, with low volatility reflecting trader caution ahead of the inflation print. Technical analysis shows the pair trapped between the 200-day moving average at 1.0285 (resistance) and horizontal support at 1.0220. Eurozone economic data remains mixed, with German industrial production falling 0.4% while French business confidence improved. Market positioning data reveals net EUR shorts at two-month highs, suggesting potential for a squeeze if US inflation disappoints. A CPI reading below 2.8% could propel EUR/USD toward 1.0350, while a hot print above 3.1% might drive the pair below 1.0200. Implied volatility for the CPI release shows markets pricing a 65-pip range.