EUR/USD has been quite volatile recently after breaking below the 1.1670 support area. Due to recent worse economic reports from USD, the currency was unable to dominate EUR as it was expected but as of the upcoming Rate Hike decision in December, a bearish pressure is expected to hit the pair in the coming days. Today FOMC Member Harker is going to speak about the Interest Rate Hike in December and upcoming rate hikes which are expected to be quite hawkish for the currency. On the USD side, there are several high impact economic reports to be published this week including Retail Sales, Unemployment Claims, PPI and Building Permits which are forecasted to be mixed in the outcome, but any positive result will lead to further gain against EUR this week. On the other hand, today EUR German WPI report is going to be published which is expected to decrease to 0.4% from the previous value of 0.6%, the impact of the economic report is expected to be minimal on the currency whereas the upcoming economic events like Draghi is going to speak twice this week about the interest rates and monetary policies which are expected to have good impact on the EUR growth in the coming days. As of the current scenario, the correction is expected to last a bit longer until one of the currency in the pair takes the lead to direct the price in one direction with the positive economic reports. To sum up, USD is expected to have an upper hand over EUR and gain further in the coming days.
Now let us look at the technical view, the price is currently being held by the dynamic level of 20 EMA and horizontal level of 1.1670 level as resistance. The price has been quite corrective in nature after it was broken earlier last week but with several rejections off the level the bearish pressure was not quite up to the mark to push the price lower. As the price remains below 1.1670-1.1700 resistance area the bearish bias is expected to continue with the target towards 1.1300 support area in the coming days.
