EUR/USD confined in a narrow trading range just above 1.0900 handle

The EUR/USD pair maintained its bid tone through European trading session, albeit has failed to build on the momentum and remained stuck within 20-pips narrow trading range just above the 1.0900 handle.

The pair traded with positive bias for the third consecutive session amid persistent greenback selling pressure. In fact, the key US Dollar Index has been struggled to decisively move back above the 99.00 handle, especially after the recent slew of disappointing US macro data, and has been supportive of the pair's consolidative price-action closer to near six month tops touched in the aftermath of Emmanuel Macron's victory in the first round of the French Presidential election.

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Investors, however, seemed reluctant from carrying large bets ahead of the next big even risk - FOMC meeting on Wednesday. Although the Fed is expected to leave its monetary policy stance unchanged but investors would be keen to know the central bank's assessment of the incoming economic data. Hence, a dovish tilt should pave way for extension of the pair's near-term upward trajectory.

Meanwhile, investors also refrained from buying the shared currency just to avoid any uncertainties before the second round of the French election is over and ahead of Friday's NFP data from the US. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "the pair needs to accelerate through 1.0950 to regain the bullish footing, with 1.1000 as the immediate target, en route to 1.1045. 1.0855 remains as the first support, followed by the base of the range at 1.0820. Renewed dollar demand below this last should open doors for a downward move towards 1.0730, where the pair will fill past week's opening gap."