After a bullish bias, EUR/USD has been trading in a range after rejecting off the 1.1870 resistance area. The USD weakened last week as FOMC failed to provide detailed information and recent economic data from the US was quite disappointing which made the bulls take over the bears. On the other hand, recently EUR has been quite positive amid economic reports and events. The market today was very slow and quiet amid lack of high impact economic events and reports on EUR and USD. Today, German WPI report was published with an increase to 0.6% from the previous value of 0.3% which was expected to be at 0.4% and Trade Balance report was published with an increase to 21.6B from the previous figure of 17.9B which was expected to be at 20.3B. On the USD side, today the Empire State Manufacturing Index report was published with a better than expected figure of 30.2 from the previous figure of 24.4 which was expected to decrease to 20.3. As for the current scenario, both the eurozone and the US released positive economic reports today. Importantly, this week the economic calendar is packed with high impact economic reports on the EUR side like ECB President Draghi's speech. On the USD side, Building Permits and Unemployment Claims report are expected to inject a good amount of volatility in the market. Such a busy economic calendar is likely to determine a further direction of this pair.
Now let us look at the technical chart. The price is currently residing below the dynamic level of 20 EMA and resistance area of 1.1870 which is expected to push the price lower towards 1.1620 support area in the coming days. The price has already rejected off the level a few times before pushing the price lower which indicates the strength of the level is quite good. So, as the price remains below the resistance area of 1.1870 the bearish bias is expected to continue further.
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