EUR/USD struggles to extend recovery, returns to 1.1550

• EUR/USD is having a tough time making a decisive move in either direction.
• US Dollar Index goes into consolidation after posting gains on Monday.
• Wall Street's main indexes look to open modestly higher.

The EUR/USD pair advanced to a session high of 1.1570 during the European trading hours but failed to preserve its bullish momentum. As of writing, the pair was virtually unchanged on a daily basis at 1.1552.

Markets remain calm ahead of Wednesday's key events

In the absence of significant fundamental drivers, major pairs are fluctuating in tight ranges. Moreover, investors seem to be opting out to stay on the sidelines while waiting for Wednesday's Consumer Price Index (CPI) data from the US and the FOMC's Meeting Minutes.

FOMC Minutes Preview: Fed to reiterate taper message, sending the dollar up, stocks down

Meanwhile, US stock index futures are up between 0.1% and 0.35% ahead of the opening bell. In case risk flows start to dominate financial markets in the second half of the day, the greenback could have a tough time finding demand. Currently, the US Dollar Index is posting small daily losses at 94.31. Nevertheless, EUR/USD is unlikely to break out of the horizontal channel that seems to have formed between 1.1550 and 1.1600.

Earlier in the day, the data from the US showed that the NFIB Business Optimism Index edged lower to 99.1 in September from 100.1 in August but investors showed little to no attention to this reading.

On the other hand, European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau said on Tuesday that the uncertainty in the eurozone shifted from growth outlook to inflation outlook.

Technical levels to watch for