EUR/USD stuck in a trading range near 1.1060 region

After struggling for direction for majority of the European trading session, the EUR/USD pair spiked to 1.1073 during early US trading session but has now retraced back to currently trade in the familiar range, around 1.1060 region. 

In absence of any major market moving economic releases, the pair has been solely driven by the buoyant risk sentiment prevalent in the market. The momentum, however, seems to lack conviction ahead of this week's key event risk, ECB meeting on Thursday. 

Although market participants are not expecting any change in the central bank's current monetary policy stance. However, investors are expecting the ECB President Mario Draghi to provide some hints towards possibilities of further monetary easing at its meeting on September 8, which might restrict any sharp appreciation of the shared currency. 

Another key focus will be the release of IMF's update on world economic outlook on Tuesday, which would drive investor sentiment surrounding riskier assets.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the risk for the pair is towards the downside, as the price is unable to advance beyond its 20 SMA, in the 1 hour chart a dynamic resistance that attracted selling interest a couple of times already today, whilst it's also hovering around a daily ascendant trend line coming from 1.0910, the post Brexit low. In the same chart, technical indicators are heading south, within negative territory, although with no momentum. In the 4 hours chart, the technical picture is neutral-to-bearish, as the price is below its 20 and 100 SMAs that anyway head nowhere, whilst the technical indicators head slightly lower below their mid-lines, also failing to suggest a clear directional strength."

"Support levels:  1.1000 1.0960 1.0910
Resistance levels: 1.1095 1.1150 1.1190"