EUR/USD Holds Above $1.1600 Ahead of ECB Rate Hike Decision

The EUR/USD pair has seen fresh buying interest during the Asian session on Wednesday, but the bulls are being cautious and waiting for key events to unfold. The pair is currently trading near $1.1630, up around 0.05% for the day.

The European Central Bank (ECB) meeting on Thursday is expected to result in a 25 basis point rate hike, which is seen as a done deal. Traders will be focusing on the central bank's outlook and its stance on inflation risks.

Later this week, the US Producer Price Index (PPI) and Consumer Price Index (CPI) will be released, providing crucial data that could influence the Federal Reserve's policy path. These events may also impact the EUR/USD pair, as market participants weigh their implications for monetary policy.

The technical analysis suggests a constructive short-term bias above the 200-period Exponential Moving Average (EMA) on the 4-hour chart at $1.1579 and the 38.2% Fibonacci retracement of the 1.1323-1.2072 upswing at $1.1609.