EUR/USD has been quite volatile and corrective recently while bouncing back from 1.1900 resistance area. There has been good amount of confusion going on in the market, though the euro is expected to be strong and the dollar is trying to regain its lost strength via the stock market boom. There is still a good amount of choppiness in the market which is expected to provide a directional bias very soon, whereas the single currency is expected to gain over the US dollar. Today German BUBA Monthly report is going to be published which is expected to be neutral in nature due to neutral economic reports being published. On the other hand, USD do not have any economic events today which might lead to more corrective moves of this pair. Tomorrow we have the German ZEW Economic Sentiment report which is expected to decrease to 15.3 from the previous value of 17.5. Additionally, the ZEW Economic Sentiment is also expected to show a slight decrease to 34.2 from the previous value of 35.6. On the USD side, tomorrow HPI report is going to be published which is expected to be unchanged at 0.4% and the Richmond Manufacturing Index is expected to decrease to 12 from the previous figure of 14. To sum up, both Europe and the US have posted mixed economic review which is expected to result in more corrective and volatile price action in the coming days. As long as any currency of this pair comes up with high-impact positive economic reports in the coming days to set any direction, the pair is expected to be corrective and volatile in nature.
Now let us look at the technical view. The pair is still residing in a corrective structure, being supported by the dynamic level of 20 EMA which has been pushing the price higher recently. The pair is expected to proceed higher with a target towards 1.2140 resistance level in the coming days but if we see any daily close below the dynamic level of 20 EMA we will be looking forward to sell with a target towards 1.1620 support level. The bullish bias is expected to continue further as the price remains above the 1.1500 level.
