EUR/USD has been quite bearish recently after bouncing off the event price area of 1.1850. Due to recent Germany political issue, the Eurozone has been affected which lead to volatility in the pair and weakness of EUR against USD recently. ECB President Draghi has been quite positive with the long-term growth and overcoming the current obstacles. Today EUR German PPI report is going to be published which is expected to decrease to 0.2% from the previous value of 0.3% and German Buba Monthly report is going to be published which will include the current and future analysis of the economy on a financial institutions viewpoint which is expected to be neutral in nature. Moreover, today ECB President Draghi is going to speak today as well on future policies and interest rates which is expected to be hawkish in nature. On the USD side, today we do not have any economic report or event to have an impact on the market but this week Core Durable Goods Orders, Unemployment Claims and FOMC Meeting is going to be held which is expected to be in favor of the currency which may result to further gain against EUR in the coming days. To sum up, today ECB might be a positive push for the EUR if everything goes well as expected which might result to further correction in the pair or else any negative outcome will result to further gain on the USD side ahead of the upcoming interest rate hike on December.
Now let us look at the technical view, the price is currently residing above the dynamic level of 20 EMA and showing some bearish pressure after being rejected off the 1.1850 resistance area. The price is currently expected to push lower towards 1.1660 and later towards 1.1300 support area in the coming days. As the price remains below 1.1850 with a daily close the bearish pressure is expected to continue further.
