The EURUSD pair remains stable, with price movements limited as the market anticipates important reports in the coming weeks. The USD has shown strength against major currencies due to negative data releases from the US, including a weak Flash Services PMI and low Consumer Confidence.

Inflation expectations have reached new highs, raising concerns about the Federal Reserve’s ability to lower rates while inflation persists above target. Upcoming NFP and CPI reports will influence the March FOMC decision.

On the EUR side, the ECB has adopted a more cautious approach, indicating that rapid rate cuts are not likely. Eurozone PMIs suggest steady growth, and a 25 basis point cut is anticipated in the upcoming meeting.

In terms of technical analysis, the EURUSD is trading near the 1.0532 resistance level, with potential for sellers to enter the market. A pullback is expected towards the upward trendline on the 4-hour chart, while buyers aim for a rally towards the 1.06 level.

The 1-hour chart indicates buyers may focus on the trendline for support, while sellers will look for a breach to target 1.02. The market remains cautious amid limited information.

Upcoming economic data includes US Jobless Claims figures and CPI releases from France and Germany, along with US PCE data, all expected to impact market dynamics.

A steady EURUSD suggests that traders are holding back, waiting for clearer economic signals before committing to a direction. Recent reports from the US have painted a mixed picture, with underwhelming consumer confidence and weaker services activity weighing on the dollar. Despite this, the currency has held firm against its counterparts, as inflation remains stubbornly high and complicates the Federal Reserve’s policy options. Markets will be focused on the upcoming Non-Farm Payrolls and Consumer Price Index figures, which could shape expectations ahead of the next Federal Open Market Committee meeting.

On the other side, Christine and her team have opted for a defensive stance, implying that rate cuts will not come as quickly as some might have anticipated. Business surveys suggest that economic activity is holding up, dampening speculation of aggressive easing. A marginal reduction of 25 basis points remains on the table, though policymakers appear in no rush to make abrupt changes.

From a technical standpoint, price action is gravitating towards a key resistance level, where sellers frequently emerge. A corrective move lower is likely, particularly with a trendline providing an area of interest for potential buyers. If the pair struggles to sustain gains towards 1.06, downward pressure could build.

A narrower focus on short-term charts highlights a battleground forming around a key support area. Bulls are watching this level closely, while those favouring the downside are waiting for a break to push towards 1.02. The lack of new developments has kept sentiment restrained, though incoming data could quickly change that.

Looking ahead, several economic reports stand to stir volatility. Weekly jobless claims will offer insight into the strength of the labour market, while inflation figures from France and Germany will contribute to the broader discussion on prices in the euro area. The US Personal Consumption Expenditures index, being the Federal Reserve’s preferred measure of inflation, holds weight and could steer expectations for monetary policy. With various data points on the horizon, traders should be prepared for shifting sentiment.