The EUR/USD pair gains ground to near 1.1560, snapping the four-day losing streak during the Asian trading hours on Wednesday. However, the potential upside for the major pair might be limited ahead of the crucial US events.

The Indian rupee is likely to open weaker on Tuesday, weighed down by a jump in the dollar index following a steep decline in the euro, as investors digested the implications of the recent US-EU trade deal.

“Further euro strength is likely to be self-defeating,” said Valentin Marinov, a currency strategist at Crédit Agricole, a French bank. Exports were already likely to weaken and become a drag on the eurozone economy because of U.S. tariffs and European government policies that would encourage more imports.

Euro falls against dollar, with Trump's tariffs seen as slowing European growth

The short-covering recovery in the US dollar has been extended today, but the momentum stalled in the European morning. Click to read.

The pound briefly hit a two-year low versus the euro on Monday, before rebounding, and dipped on the dollar, though its moves were largely a function of those elsewhere as investors digested the announcement of an EU-U.

The FX market is now closely watching technical setups in EURUSD and USDCAD, both of which are approaching critical inflection points. The EURUSD pair has been on a sharp decline, now testing a long-standing descending channel on the 4-hour chart. This zone—around the 1.155 area—has previously acted as reliable support.