The EUR/USD currency pair remained confined within a narrow trading range around the 1.0470 mark on Tuesday, unable to capture the attention of speculative traders. Despite various economic events and indicators, the pair struggled to gain momentum to move decisively above the psychological level of 1.0500. The EUR/USD pair faced resistance from a bearish 100 Simple Moving Average (SMA) at approximately 1.0540, while finding support from a mildly bullish 20 SMA operating dynamically in the 1.0400 region.
Throughout the day, the EUR/USD pair saw limited movement, lacking the speculative interest needed to drive significant price action. The pair remained unable to break past the 1.0500 threshold, as buyers hesitated to push prices higher. Meanwhile, the Eurozone reported an increase in Negotiated Wage Rates by 4.12% for the period, a recovery from the previous quarter's decline of 5.43%. This data provided some support to the Euro as European equities performed better, yet it was insufficient to propel the EUR/USD above its recent range.
Technical indicators offered mixed signals for traders. While the 20 SMA provided dynamic support, advancing well above the flat 100 and 200 SMAs, the bearish 100 SMA continued to exert downward pressure. This technical setup kept the pair constrained, with traders closely monitoring potential breakout levels. In early trading, the 10-year Treasury bond yield advanced, now offering 4.31%, albeit down by 7 basis points for the day. This development created modest selling pressure on the US Dollar, allowing the EUR/USD pair to inch higher.
Market participants looked forward to the American session for further cues, as it promised key economic data releases, including February's CB Consumer Prices and several regional manufacturing indexes. Additionally, investors eagerly anticipated the US Consumer Confidence Index data for February, hoping it might provide fresh momentum for currency markets.
As the day progressed, the EUR/USD pair found some footing in the latter half of Tuesday's trading session, climbing towards the 1.0500 mark. The slight weakening of the US Dollar helped ease selling pressures on the Euro, aiding its gradual ascent. However, with buyers still unconvinced to push decisively beyond 1.0500, the pair remained vulnerable to fluctuations in market sentiment and external economic influences.