EUR/USD has been quite impulsive amid the bearish momentum that led the price to reside below 1.1500 currently. USD has been quite impulsive with the gains despite mixed nonfarm payrolls on Friday.
Since Friday, EUR/USD has been quite indecisive, closing the previous impulsive bearish week. However, today the bearish pressure seemed to have continued again which may push the price further downward in the coming days. EUR has been struggling amid the economic reports recently which lead to certain bearish pressure in the pair. As a result, USD has gained certain momentum. This week the economic calendar lacks macroeconomic reports from the eurozone. So EUR finds it difficult to assert its strength.
Today German Industrial Production report was published with an increase to -0.3% from the previous value of -1.3% which failed to meet the expectation of 0.4% and Sentix Investor Confidence decreased to 11.4 as expected from the previous figure of 12.0.
On the USD side, for the observance of Columbus Day there are no economic reports or events in the US today. Some economic reports will follow later this week. They are likely to make a good impact on the USD gains over EUR in the short term. On Wednesday, US PPI report is going to be published which is expected to increase to 0.2% from the previous value of -0.1% and on Thursday US CPI report is going to be published which is expected to be unchanged at 0.2%.
Meanwhile, amid the empty economic calendar of the eurozone, EUR has no reasons to extend its gains further against USD throughout the week. On the other hand, USD receives a boost from optimistic expectations for the nearest economic data. The market sentiment in favor of the US dollar may lead to further bearish pressure in the pair in the coming days.
Now let us look at the technical view. The price is currently quite impulsive inside the bearish bias which lead the price below 1.1500 area while also retesting the trend line resistance as well. As the price remains below 1.1600 and if a daily close below 1.1500 is observed, then further bearish pressure is expected in this pair with a target towards 1.1300 area in the coming days.
SUPPORT: 1.1300
RESISTANCE: 1.1500, 1.1600
BIAS: BEARISH
MOMENTUM: IMPULSIVE
