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The EUR/USD pair maintained gains above 1.1500 during European trading hours on Tuesday, reflecting USD weakness ahead of the Federal Reserve's policy decision. The pair remains constrained near 1.1530, with traders closely monitoring Fed statements for clues about future monetary policy. Key technical levels include support at 1.1480 and resistance at 1.1570, which could determine short-term direction. The USD's underperformance is driven by expectations of a prolonged high-interest rate environment, reducing its appeal against the euro. This dynamic impacts global forex markets, particularly for Gulf investors with USD-exposed portfolios. A break above 1.1570 could signal renewed euro strength, while a drop below 1.1480 might reignite bearish momentum. MENA traders should focus on the Fed's Wednesday announcement and subsequent market reactions. Broader implications include potential shifts in cross-currency flows and commodity pricing. Technical indicators suggest consolidation is likely until key levels are decisively breached.
