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  • EUR/USD price remains slightly positive on the day, within the range of the past two sessions.
  • Stronger USD keeps pressure on the Euro amid Fed’s tapering and rate hike schedule.
  • ECB officials maintain a cautious tone, further limiting the gains in the Euro.

On Tuesday, the EUR/USD price rose slightly in Asia. In the last two sessions, the pair has traded between 1.1540 and 1.1580. EUR/USD is trading at 1.1558 at writing, with a 0.5% increase for the day.

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DXY, which measures the dollar’s performance against six major currencies, is still near its all-time high of 94.40, giving a tough time to EUR/USD gains.

Strong dollar buying pressure pushed EUR/USD prices below 1.1600, their lowest since July 2020. The dollar continues to strengthen amid expectations of a Fed stimulus cut, despite the disappointing NFP numbers released on Friday, which could start as early as November, and a possible rate hike in late 2022.

Conversely, the common currency remains depressed amid rising inflation concerns due to rising energy prices. Philip Lane, the chief economist of the European Central Bank (ECB), has ignored the recent surge in inflation as an excuse for monetary policy.

In addition, ECB Council member Yannis Stournaras discredited the idea of rising energy prices and, later, interest rate hikes due to increasing inflation. With the Fed and Bank of England signaling an upcoming rate hike, the Euro’s prospects are weighed down by the central bank’s cautious outlook.

Charles Michel, President of the European Union (EU), and Chinese President Xi Jinping are expected to talk by phone on October 15.

The German wholesale price index, the ZEW economic sentiment in the Eurozone, and the openings in the USA JOLTS will provide additional stimulus to the market participants.

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EUR/USD price technical analysis: Buyers eying to acquire 1.1600

EUR/USD 4-hour price chart

The EUR/USD price has been consolidating in a tight range of 40 pips since Monday. The pair has completed a 46% average daily range so far. The volume data is the only indicator that is given some clues for a potential upside move. However, sustaining beyond the 1.1600 level remains the key for buyers. On the flip side, any move below the 1.1550 mark will risk further losses towards the 1.1500 area.

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