EUR/USD has recently broken below the important price area of 1.15 with a strong daily close which does indicate further bearish momentum in the pair for the coming days. While EURO struggling with the recent economic, political, trade war and Brexit tensions, USD has been meeting expectations which lead to certain impulsive gains in the process.
Though today EURO do not have any impactful economic reports to be published this week EURO Flash GDP report is going to be published on Tuesday which is expected to be unchanged at 0.3% and on Friday EURO Final CPI is going to be published which is also expected to be unchanged at 2.1%. ECB being silent for the time being about the economy does inject more weakness for the currency in the market against other majors as well.
On the other hand, having no economic report or event today to impact the market on the USD as well, this week on Wednesday, Retail Sales report is going to be published which is expected to decrease to 0.2% from the previous value of 0.5% and Core Retail Sales report is expected to be unchanged at 0.4%. Moreover, on Thursday, USD Building Permits report is going to be published which is expected to have a slight increase to 1.31M from the previous figure of 1.29M in the process.
As of the current scenario, EUR is expected to struggle further to sustain its gain against USD in the process whereas USD is expected to dominate further in the coming days. Despite the upcoming economic reports results, the market sentiment is currently biased towards USD in comparison to the EURO at this moment.
Now let us look at the technical view. The price started the week with a gap lower than the previous close, which is currently expected to retrace towards 1.1450-1.1500 area before pushing lower again with the target towards 1.1300 to 1.1100 area with a daily close. As the price remains below 1.15 with a daily close, the bearish bias is expected to continue further.
SUPPORT: 1.1300, 1.1100
RESISTANCE: 1.1450-1.1500
BIAS: BEARISH
MOMENTUM: VOLATILE
