EUR/USD has been impulsively bullish recently which has led the price to reside above 1.20 price area. Due to recent weakness of USD, EUR gained impulsive momentum despite downbeat economic reports published today. The market is still quite low on liquidity after the holidays, observed in most countries. Today, Spanish Manufacturing PMI report was published with decrease to 55.8 from the previous figure of 56.1 which was expected to be at 56.4, Italian Manufacturing PMI decreased to 57.4 from the previous figure of 58.3 which was expected to be at 58.6, French Final Manufacturing PMI decreased to 58.8 which was expected to be unchanged at 59.3, German Final Manufacturing PMI report was published unchanged as expected at 63.3, and Final Manufacturing PMI report has also published unchanged at 60.6 as expected. On the other hand, today US Final Manufacturing PMI report is going to be published which is expected to be unchanged at 55.0. As for the current scenario, USD has been weighed down by EUR whereas any positive economic report on the USD side will encourage impulsive counter move, leading to further bearish pressure in the future. The probability of EUR losing grounds in the coming days is quite high.
Now let us look at the technical chart. The price is currently holding above the 1.2050 and is expected to have an impulsive pullback towards the dynamic level soon. A daily close below 1.2050 today is expected to cause further bearish pressure in the pair with a target towards 1.1850 area in the coming days.
