EUR/USD has been quite bearish this week having bounced off the 1.2050 resistance area with a lot of struggle along the way. EUR has been the dominant currency in the pair for the last few weeks but the area of 1.2050 helped bears to push the price lower with an impulsive pressure. Today the euro had some mixed economic reports which resulted in deeper losses against USD. The German Industrial Production report was published with an increase to 3.4% from the previous negative value of -1.2% which was expected to be at 1.9%. Furthermore, the German Trade Balance report also showed an increase to 22.3B from the previous figure of 19.9B which was expected to be at 20.7B. On the other hand, the French Trade Balance report showed greater deficit of -5.7B from the previous figure of -5.3B which was expected to be at -4.8B. At the same time, the Italian Monthly Unemployment Rate showed a slight decrease to 11.0% as expected from the previous figure of 11.1% and the Eurozone Unemployment Rate also met the expectation of 8.7% decreasing from the previous value of 8.8%. Speaking about the US news, the Retail Sales, PPI and CPI reports are to be published this week. Today the NFIB Small Business Index report was published with worse outcome of decrease to 104.9 from the previous figure of 107.5 which was expected to be at 108.4. As of the current scenario, despite having worse economic reports in comparison to EUR, USD has maintained gains until now which indicates the strength of USD against EUR. As this kind of pressure remains and the US presents better economic reports, it is expected that USD is going to dominate over EUR in the coming days.
Now let us look at the technical view. The price is currently being held by the dynamic level support of 20 EMA which is expected to be violated and proceed much down towards 1.1850 support area in the coming days. Price is currently quite slowed down in comparison to recent bearish pressure in the pair but with small retracement the price is expected to head much lower in the future. As the price remains below 1.2050, the bearish bias is expected to continue further.
