EUR/USD has been quite impulsive with the bearish pressure breaking below 1.2350 with a daily close. Ahead of the upcoming Fed rate decision which can result in a hike from 1.50% to 1.75%, the impulsive gain on the USD side is quite impressive and explains the current sentiment on the market. EUR has been quite neutral with the economic reports having no strong element to support its gain ahead of the rate hike this week. Today, the Italian Industrial Production report is going to be published which is expected to decrease to -0.5% from the previous value of 1.6%. Besides, the Italian Trade Balance report is expected to decrease to 4.87B from the previous figure of 5.25B and the trade balance report is expected to show a decrease to 22.6B from the previous figure of 23.8B. Moreover, today G20 Meeting is going to be held which is expected to inject good amount of volatility in the market for the whole day. The German Buba Monthly Report is also going to be published which is expected to be quite neutral in nature and will unlikely provide support to EUR. On the other hand, today USD FOMC Member Bostic is going to speak about Interest Rates and Monetary Policies which is expected to help USD gain some momentum ahead of the possible rate hike on Wednesday. As of the current scenario, USD is expected to gain momentum against EUR in the coming days whereas EUR may struggle to keep its grounds leading to impulsive bearish pressure in the pair.
Now let us look at the technical view. The price is currently residing below 1.2350 with a daily close and having dynamic level of 20 EMA working as a resistance as well. Ahead of the upcoming rate hike, USD is expected to gain further momentum towards 1.2080 and later towards 1.1720 support area in the coming days. As the price remains below 1.2350 with a daily close, further bearish pressure is expected in this pair.
