EUR/USD Stuck in Range Ahead of FOMC Decision

The EUR/USD pair has been trading within a well-defined monthly range just above support. The recent pullback has held key support levels, keeping the broader recovery viable for now.

A break of the monthly range is expected to provide clearer directional guidance heading into the second half of September. The next major technical hurdle for the Euro lies with the convergence of the 52-week and 200-day moving averages just overhead at 1.1629/33.

The monetary policy outlook remains front and center for EUR/USD following this week's widely expected ECB rate hike. Attention now shifts to next week's FOMC decision, where expectations for a hike have surged following Friday's U.S. CPI release.