EUR/USD Edges Up Amid Middle East Tensions and Economic Uncertai

The EUR/USD pair saw a slight uptick, reaching 1.0554 on Monday as it closed trading below this peak. A stronger US Dollar at the start of the week, driven by ongoing Middle East tensions, initially led to a demand for safety. However, as the day progressed, the USD weakened against major currencies. The escalating conflict in the Middle East, marked by attacks from Hezbollah in addition to the ongoing Israel-Palestine conflict, created global economic uncertainty and added pressure on central banks. Data releases were limited, with Germany's Wholesale Price Index edging up, the Euro Zone showing an improved trade balance, and the US reporting a decline in the NY Empire State Manufacturing Index. Upcoming releases include Germany's ZEW Survey on Economic Sentiment and US Retail Sales for September, Industrial Production, Capacity Utilization, and Business Inventories for August.

Based on technical analysis, the EUR/USD slightly higher on Monday, pushing towards the middle band of the Bollinger Bands. Currently, the EUR/USD is trading at the middle band, suggesting the potential for a consolidating move. The Relative Strength Index (RSI) stands at 48, indicating that the EUR/USD is back to neutral bias.

Resistance: 1.0560, 1.0616
Support: 1.0502, 1.0451