EUR/USD has been quite volatile and corrective after breaking above the resistance area of 1.1280-1.1360 which is now working as a support area. The week started with little movement in the pair and yesterday’s daily close was in indecision. After the NFP report published on Friday, the pair did get some bearish push but it did not sustain much. Today we have EUR Italian Industrial Production report to be published which is expected to show a growth to 0.5% from previous negative value of -0.4%, this event is expected to have little to medium impact in the market today. On the USD side, today we have JOLTS Job Opening report to be published which is expected to show a decrease to 5.98M from previous value of 6.04M, Final Wholesale Inventories report is expected to be unchanged at 0.3% and FOMC member Brainard is going to speak today about nation’s key interest rates and future monetary policy. During the USD economic events a good amount of volatility is expected to hit the market and USD is expected to gain more against EUR for a shorter period of time due to recent hawkish US economic reports but in long term, EUR is still the stronger than USD until the bullish trend is countered with heavy bearish pressure.
Now let us look at the technical view, the price has been quite indecisive yesterday. Currently, the price is showing some bearish pressure in the market which is expected to take the price down to support area of 1.1280-1.1360 before continuing further in the bullish trend of the market. If the price bounces off the support area the price is expected to reach 1.1610 resistance level in the future. On the other hand, in case price breaks below the 1.1280 support level with a daily close then we will be looking forward to the price to move down to 1.1150 support level. As the price remains above the support area bullish bias is expected to continue further.
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