EUR/USD Price Forecast: Bullish bias remains above 1.1600 ahead of ECB and US inflation

The EUR/USD pair is currently trading near the 1.1630 region, up around 0.05% for the day, with bulls waiting for the European Central Bank's meeting and US inflation figures. A 25 basis point rate hike by the ECB is expected, but traders will focus on the central bank's outlook amid elevated inflation risks. The US Producer Price Index and Consumer Price Index releases on Thursday and Friday may provide clues about the Federal Reserve's policy path, while September Fed rate hike bets and geopolitical uncertainties could support the US Dollar and cap gains for EUR/USD.

Technical analysis indicates a short-term bullish bias above the 200-period EMA and 38.2% Fibonacci retracement levels, while resistance is at the 50.0% retracement and 61.8% levels, with higher barriers at 1.1912 and the 1.2072 swing high. Support is seen at the 38.2% retracement and 200-period EMA, with a potential break exposing lower levels.

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