EUR/USD has been quite volatile and corrective recently which leads the pair to trade between a range of 1.1500-1.1750 area for a few days now. Though recently EUR has been able to gain certain momentum against USD, but the trend is still bearish which might lead to continuation of downward pressure in the coming days.
Ahead of the ECB Meetings and Main Refinancing Rate which is expected to be unchanged at 0.00%, today, EURO Consumer Confidence report is going to be published which is expected to be unchanged at -1. Several EURO economic reports are going to be published this week which might lead to certain volatility in the market which may result in certain gain on the bullish side this week.
On the USD side, this week Core Durable Goods report is going to be published on Thursday which is expected to increase to 0.5% from the previous value of 0.0% and Average GDP report on Friday is expected to increase to 4.0% from the previous value of 2.0. Today, USD Existing Home Sales report is going to be published which is expected to increase to 5.46M from the previous figure of 5.43M.
As of the current scenario, the USD economic reports are quite optimistic with the forecast in comparison to the EURO reports whereas as of the recent USD strength, USD is expected to continue its dominance over EUR in the coming days of the week leading to more downward momentum in the future whereas EUR is expected to struggle to maintain the bullish momentum it has created recently in the market.
Now let us look at the technical view. The price is currently residing at the edge of the 1.1750 area having dynamic resistance from the Kumo Cloud. Moreover, the bearish bias is still intact as the price remain below 1.1750 and is expected to push lower towards the 1.15 support area in the coming days. The MACD is showing lower volume of bulls in the process which also ensures the upcoming bearish momentum as the price remains below 1.1750 with a daily close.
RESISTANCE: 1.1750 - 1.1950
SUPPORT: 1.1500-50
BIAS: BEARISH
MOMENTUM: CORRECTIVE AND VOLATILE
