EUR/USD Chart Eyes Range as Fed, ECB Pause Looms

EUR/USD is consolidating in a tight range as the pair's short-term moving averages flatten, reflecting market consensus that both the Fed and ECB will hold rates steady in October. RSI readings sitting near the 50 midline confirm the lack of directional conviction, with momentum traders sidelined until fresh catalysts emerge.

Support has formed just below recent swing lows, while resistance caps upside attempts near the prior consolidation ceiling. A decisive break on elevated volume would likely signal the market pricing in December hike expectations from one or both central banks.

Bollinger Bands have narrowed significantly, a classic precursor to a volatility expansion. Traders should watch for a squeeze breakout as the policy pause phase nears its end.