The US dollar has been recently the dominant currency in the pair while the euro has failed to sustain the bullish pressure it managed to gain earlier off the 1.1100 support area.
The European Union looks increasingly likely to impose disciplinary procedures on Italy over the management of its huge public debt, after recent inconclusive meetings. The EU is urging Italy to adopt new measures to improve its public finances. Italy breached those rules last year, data show, and is forecast to do so again this year and next. The Commission expects Rome's debt to rise even further above the EU's ceiling of 60% of economic output from about 132% at present.
In the UK, Brexit issue continues to hover over the economy. Some British politicians have suggested that in the event of a "no deal Brexit", Article 24 of the World Trade Organization's General Agreement on Tariffs and Trade can be invoked to keep Britain and the EU trading without tariffs. Moreover, with growth slowing and inflation staying well below the ECB's target, the bank recently raised the prospect of even more stimulus, arguing that a rate cut, or even more asset purchases may become necessary. With interest rates already at record lows and a 2.6 trillion Euro bond purchase scheme ended just last year, analysts argue that the ECB has very little actual firepower left as its remaining tools lack significant potency.
Today and throughout the week ECB President Draghi is going to speak about the upcoming changes in monetary policy and interest rates. Therefore, the euro is likely to be volatile ahead of the ECB's decision.
On the other hand, President Donald Trump urged the Fed to cut interest rates. The Fed is also expected to leave borrowing costs unchanged at a policy meeting this week but possibly lay the groundwork for a rate cut later this year. The US economic growth asserts strength because of the data that showed increases in domestic retail sales and factory output in May.
This week no important economic reports will be unveiled. The greenback may lose momentum if the euro fails to regain after ECB's president's speech.
Now let us look at the technical view. The price is currently pushing lower after certain pullback along the way since the start of the day whereas being below 1.1300-50 resistance area is expected to push lower to 1.1000-50 support area in the coming days. The price action context is still quite volatile with a bearish trend. The price is expected to lose steam as the overall bearish pressure persists.
