Oil Prices Weigh on EUR/USD as US Inflation Data and ECB Decision Loom

Rising oil prices are putting pressure on the euro and affecting risk appetite. The US inflation data, particularly the producer price index (PPI) and consumer price index (CPI), is also in focus ahead of the Fed's next meeting. The European Central Bank (ECB) will make its policy decision on Thursday, with a rate hike likely.

The EUR/USD pair remains range-bound, with resistance levels at 1.1635-50 and support levels at 1.1565-75, 1.1500, and 1.1405. The strong Eurozone economy has kept the euro's downside limited, but a potential drop in oil prices could lead to a rally in the pair.

From a technical analysis perspective, a break below the 1.1635/50 area could lead to a move lower, with the next support seen around 1.1565-75. On the other hand, if the resistance breaks, then 1.1700 could be retested, followed by 1.1800 as an upside objective.