EUR/USD has been residing inside the corrective and volatile range between 1.1200 to 1.1500 area for a few weeks. EURO managed to gain momentum having better economic results published today while USD struggling with the mixed Employment reports published recently.
EUR having series of worse economic reports published recently lead to losing certain grounds against USD, but it managed to regain it soon after worse US reports. Today German Retail Sales report was published with significant increase to 1.4% from the previous value of 0.1% which was expected to be at 0.4% and SENTIX Investor Confidence increased to -1.5 from the previous figure of -0.3 which was expected to be at -2.0. Due to Holiday purchase, the Retail Sales report is assumed to gain significant momentum leading to such growth in the process. Additionally, German Factory Orders report was also published today but with decrease to -1.0% from the previous value of 0.2% which was expected to be at -0.2%.
On the other hand, ahead of FOMC Meeting and FED Chair Powell's speech on Thursday, USD is expected to regain certain momentum again if the upcoming economic results remain favorable in the process. Today, US ISM Non-Manufacturing PMI is going to be published which is expected to decrease to 59.6 from the previous figure of 60.7. Though the expectation is dovish but better result may lead to impulsive gain on the USD side for the coming days as FED Chair Powell to speak this week about upcoming rate hikes in the coming months and what is the expectation of FED for 2019.
As of the current scenario, EURO managed to gain impulsive momentum today with positive economic reports, but it is currently struggling to push further in the process while ahead of high impact events and reports yet to be published on USD side which are currently quite optimistic with the expectations. As a result, certain bearish pressure is expected on the pair for the coming days.
Now let us look at the technical view. The price is currently residing at the edge of 1.1450-1.1500 resistance area from where it is expected to push lower towards 1.1200-60 support area in the coming days. Though the price is still quite volatile and corrective but residing below 1.1500 with a daily close does indicate the existence of bearish bias in the pair which might persist the bearish momentum in the coming days.
SUPPORT: 1.1200-60
RESISTANCE: 1.1450, 1.1500
BIAS: BEARISH
MOMENTUM: VOLATILE
