EUR/USD has been in an impulsive bearish trend since its bounce off the resistance of 1.0850 area. EUR is going through negative economic data streak and the streak seems to continue till today. Today, EUR had Spanish Manufacturing PMI report which was expected to be at 54.6 but the report was published with a figure of 53.9, Italian Monthly Unemployment rate was somehow positive at 11.5% which was expected to be at 11.9%. The EUR Unemployment rate was a slight decreased at 9.5% the same as expected amount and PPI was published at 0.0% which was expected a rise at 0.2%. On the other hand, USD also has a high-impact economic event today, ISM Manufacturing PMI which previously was at 57.7 and today forecasted to be at 57.2. Market is expected to be volatile when the USD economic event is published and the market can move either way as per volatility exists in the market.
Now let us look at the technical view, the price is currently above the support 1.0630-40 area and as of the indecision we can see in today's candle, it is expected that the price will move up in the coming days towards the resistance 1.0716 before hitting the support at 1.0630-40. On other hand, if the price do not retrace towards the 1.0716 resistance area and directly hits the support of 1.0630-40 area, then we will look for any daily close above or below the 1.0630-40 area before taking any decision in this pair this week. A daily close below the support will signify more downward move and a rejection off the support level will target the resistance at 1.0716.
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