Anna 
EUR/USD grappled with limited momentum on Monday, with the pair maintaining a tight trading range just above the 1.0500 mark throughout the Asian session. Several key economic factors continue to influence the dynamics of this prominent currency pair.
The resilience of the U.S. economy has paved the way for the Federal Reserve (Fed) to contemplate another round of interest rate increases, consequently bolstering U.S. bond yields. This enduring strength in the U.S. economy has emerged as a significant “tailwind” for the U.S. dollar, and when coupled with the European Central Bank’s persistently dovish stance, it serves as a restraining force on EUR/USD’s upward momentum.
From a technical vantage point, the recent rebound from the $1.0445-$1.0450 range, corresponding to this year’s lows, has been contained within an upward-slanting channel. In light of EUR/USD’s pronounced pullback from the 17-month high achieved in June, a bearish flag pattern has taken shape, indicating minimal resistance to the downside for the currency pair.
Furthermore, daily oscillators have shifted into negative territory, further underscoring the prevailing bearish sentiment. Nonetheless, it is advisable to exercise caution and await a clear break below the ascending channel support, positioned around the 1.0540-1.0535 range, before setting sights on the 1.0500 level. There is potential for EUR/USD to eventually dip to yearly lows located in the 1.0445-1.0450 vicinity.
Conversely, the recent swing high near the 1.0600 mark has emerged as an immediate resistance point. Should EUR/USD’s upward momentum persist, it could propel the pair closer to the 1.0665-1.0670 resistance area and subsequently towards the upper boundary of the aforementioned trend channel, which currently hovers just above the 1.0700 psychological threshold.
This level is poised to serve as a pivotal inflection point for short-term traders. A decisive break above this level would negate the bearish flag pattern, potentially triggering aggressive short covering. The next target for the EUR/USD pairing is the formidable 1.0800 round-figure mark, with a subsequent challenge to the 1.0810-1.0815 confluence level, formed by the intersection of the 100-day and 200-day simple moving averages.
