EUR/USD has been quite impulsive with the bullish gains which lead the price to reside above 1.2350 price area currently. Despite having an increase in Interest Rate recently, USD failed to gain much momentum as expected whereas recent Stock Market Fluctuation did also affect the bearish pressure in the pair. Today EUR German Buba President Weidmann spoke about the monetary policies which were quite neutral in nature which is expected to have no immediate impact on the currency. On the other hand, ahead of the CB Consumer Confidence report tomorrow which is expected to have slight increase to 131.2 from the previous figure of 130.8, today FOMC Member Dudley and Mester is going to speak on Monetary Policy and Interest Rate decisions whereas the recent Interest Rate hike from 1.50% to 1.75% lead the market into certain volatility and weakness for the USD in the pair. As of the current scenario, ahead of the Good Friday this week, the market is expected to be quite corrective and slower in nature. Certain consolidation is also expected throughout the week but there is currently no sign of USD to regain its momentum until any positive USD economic report helps the currency to gain momentum.
Now let us look at the technical view. The price is currently residing above 1.2350 with an impulsive non-volatile trend structure whereas according to Fibonacci Expansion rule, the price is expected to bounce off the 1.2430-50 resistance area and then proceed lower towards 1.2350 and later if it is broken successfully then it is expected to proceed towards 1.2260 and later towards 1.2160 in the coming days. As the price remains below 1.25 price area, the bearish bias is expected to continue.
