Surges Above 1.0600 Ahead of FOMC Meeting and Key Data

The EUR/USD pair surged above 1.0600 during the American session, driven by a weakened US Dollar in anticipation of the upcoming FOMC meeting and crucial jobs data. The Euro received additional support from positive Eurozone economic data. Notably, Germany's economic contraction in the third quarter was less severe than anticipated, and inflation rates in October eased below expectations. These factors support the expectation that the European Central Bank (ECB) will maintain its current stance. While the Federal Reserve (Fed) is set to keep rates unchanged, strong economic performance in the US allows for potential rate hikes in the future. Key US data releases throughout the week will influence the US Dollar's momentum.

According to technical analysis, the EUR/USD moves higher on Monday, approaching the upper band of the Bollinger Bands. Currently, the EUR/USD is trading around the upper band, indicating the potential for a slight lower movement. The Relative Strength Index (RSI) is at 58, signaling that the EUR/USD is in neutral bias.

Resistance: 1.0616, 1.0705
Support: 1.0500, 1.0405