EUR/USD has been quite corrective and volatile recently while residing below 1.1700-50 area with a daily close. Though the bears are more impulsive compared to the bulls, this may lead to certain bearish momentum, pushing the price much lower in the coming days.
In light of the recent ECB Press Conference, EUR is expected to lose momentum as the interest rates are expected to remain unchanged till Summer 2019. Besides, EUR has been weighed down by Brexit uncertainty and trade war tension. Ahead of a series of economic reports to be published this week in the eurozone, today Spain's Flash CPI report was published with a slight decrease to 2.2% which was expected to be unchanged at 2.3% and Germany's Prelim CPI report is yet to be published which is expected to show an increase to 0.4% from the previous value of 0.1%.
On the other hand, as the US NFP report is to be published this week on Friday, EUR/USD is likely to trade with higher volatility this week that might lead to significant changes in the market momentum against EUR. Though USD has been quite impulsive with the recent gains in comparison to EUR, this increases the chance of the market following it more in the future. Today, US Pending Home Sales report is going to be published which is expected to increase to 0.4% from the previous negative value of -0.5%.
At present, EUR proved to be quite soft today amid fresh economic report. Germany's Prelim CPI may add some value if the result comes out to be better than expected. Though there has been certain correction and volatility in the market earlier, USD is expected to gain an advantage amid optimistic forecasts of the economic reports ahead of the NFP this week.
Now let us look at the technical view. The price has been quite corrective while squeezing with a bearish pressure creating lower highs in the process. As connected with a trend line, the price is expected to push lower after certain retracement towards 1.17 area in the process. Having no strong Bullish Divergence evidence, the price is expected to push lower, residing below 1.17 area with a daily close and a target towards 1.1500-50 area in the coming days.
RESISTANCE: 1.1700-50
SUPPORT: 1.1500-50
BIAS: BEARISH
MOMENTUM: CORRECTIVE AND VOLATILE
