• EUR/USD gains positive traction for the second straight day, albeit lacking bullish conviction.
• A fresh leg down in the US bond yields undermines the USD and lends support to the major.
• The upside remains capped as traders now keenly await this week’s crucial inflation figures.

The EUR/USD pair is seen building on the previous day's goodish rebound from the 1.0815-1.0810 region and gaining some positive traction for the second straight day on Tuesday. Spot prices stick to modest gains through the early European session and remain supported by diminishing odds for rapid interest rate cuts by the European Central Bank (ECB). This, along with the prevalent selling bias around the US Dollar (USD), is seen as another factor acting as a tailwind for the currency pair.

That said, nervousness about the Eurozone's darkening economic outlook might hold back bulls from placing aggressive bets around the shared currency. Adding to this, the Federal Reserve's (Fed) higher-for-longer interest rates narrative should help limit the downside for the Greenback and further contribute to capping the upside for the EUR/USD pair. Investors also prefer to wait on the sidelines ahead of this week's releases of key inflation data from the Eurozone and the United States (US).

The flash CPI estimates from Germany, France and Spain are due for release on Thursday, which will be followed by the US Personal Consumption Expenditures (PCE) Price Index. Apart from this, Friday’s closely watched Eurozone inflation data will play a key role in influencing the shared currency and provide some meaningful impetus to the EUR/USD pair ahead of the upcoming ECB policy meeting on March 7.