EUR/USD has been corrective between 1.0850 to 1.0950 area since the French Election GAP last week. Today the Labor Day is celebrated around the globe so the banks and financial institutions in Europe are closed. Thus, there are no economic events on the EUR side to be published. On the USD side, today we have Treasury Sec Mnuchin to speak about Trump's upcoming policies for the US economy which is expected to cause high volatility in the market. Along with that, we have the US Core PCE Price Index report to be published which is expected to be negative at -0.1% versus the previous reading of 0.2%, Personal Spending is expected to increase by 0.2% which previously was at 0.1%. At the same time, the ISM Manufacturing PMI report is expected to decrease to 56.6 which previously was at 57.2.
Now let us have a look at the technical view. The price is currently residing below the resistance of 1.0950 and as the previous French Election gap, the price is expected to continue moving with bearish bias. Currently, we will be looking forward to sell if the price breaks below 1.0850 with a daily close and we will target 1.0720 as our next lower target. On the other hand, if the price breaks above 1.0950 with a daily close we will be looking forward to buy with a target towards 1.1050-1.1120 resistance area.
