EUR/USD Caught in Range-Bound Limbo as Markets Await Policy Clues

The EUR/USD currency pair is expected to remain within a narrow trading range of 1.1550-1.1650 in the near term, as investors weigh conflicting monetary policy signals from the European Central Bank and the Federal Reserve.

According to recent data, the euro has found support at 1.1550, while resistance has emerged around 1.1650, indicating strong market interest in these levels.

Market participants are closely monitoring U.S. inflation data and comments from Fed officials for clues on the pace of tapering, as well as the ECB's pandemic emergency purchase programme (PEPP), which continues to provide liquidity but may slow down soon.

Traders can use this range to identify potential entry and exit points, buying near support and selling near resistance. However, a break above or below the range could signal a new trend.