EUR/USD Retreats from Key Level as ECB Holds Rates, Lagarde Stays Cautious

EUR/USD traders pushed the pair to a critical technical edge before reversing course, as the European Central Bank left all three key interest rates unchanged in line with market expectations. ECB President Christine Lagarde reinforced that future policy decisions will remain firmly data dependent, offering no clear forward guidance on the timing of the next move. The hold decision provided little fresh impetus for euro bulls, and the pair's failure to break through resistance triggered a pullback as traders reassessed positioning. The price action suggests that EUR/USD is trading within a well-defined range, with the recent rejection at the upper boundary signaling seller interest at elevated levels. Traders should monitor upcoming Eurozone PMI and inflation data for clues on whether the ECB will lean toward easing at subsequent meetings. Near-term resistance remains at the rejected level, while support is expected at the lower end of the recent consolidation zone. The data-dependent stance keeps two-way risk elevated.