EUR/USD struggles to break 1.0500 despite German coalition talks

The EUR/USD exchange rate is struggling to break the 1.0500 level, despite recent political developments in Germany. The CDU/CSU alliance plans to form a centrist coalition with the SPD, which may limit significant reforms. The euro's gains diminished during European trading, returning to previous levels. Key support is currently at 1.0460-62, which allows buyers to maintain a bullish outlook in the near term. If the support level is breached, focus may shift back to 1.0400, indicating a return to the trading range seen since the start of the year.