EUR/USD has been following the bearish trajectory recently which is expected to push the price lower in the coming days. USD has been the dominant side in the pair since the price broke below 1.2350 that is expected to extend further downward in the coming days.
Today, EUR has been quite mixed amid a series of the eurozone's economic reports which made the currency lose some momentum against USD. Today, German Prelim GDP report was published with a decrease to 0.3% from the previous value of 0.6%, French Final CPI report was published with an increase to 0.2% from the previous value of 0.1%, and Prelim Private Payrolls report was published with a decrease to 0.3% which was expected to be unchanged at 0.4%. Moreover, the eurozone's Flash GDP report was published unchanged at 0.4%, German ZEW Economic Sentiment was also published unchanged at -8.2% which was expected to decrease in deficit to -8.0%, and Industrial Production failed to meet the expectation of 0.6% and resulted in 0.5% instead.
On the other hand, today US Core Retail Sales report was published with a decrease to 0.3% from the previous value of 0.4% which was expected to increase to 0.5%, Retail Sales decreased to 0.3% from the previous value of 0.8% which was expected to be at 0.4%, and Empire State Manufacturing Index report was published with an increase to 20.1 from the previous figure of 15.8 which was expected to decrease to 15.1. Additionally, today US Business Inventories report is yet to be published which is expected to decrease to 0.2% from the previous value of 0.6% and FOMC Member Willis is going to speak that is expected to have a neutral impact on USD gains.
As for the current scenario, both currencies in the pair are struggling amid mixed economic reports that might lead to certain corrections and volatility in the pair. However, as USD has been a bit stronger in light of the economic reports, it is expected to have an upper hand over EUR in the coming days.
Now let us look at the technical view. The price is currently quite bearish in nature after certain retracement towards 1.20 area with a Bullish Divergence in place. Though the expected amount of retracement was not observed yet, the price remains below 1.2050 with a daily close. So further bearish pressure is expected in this pair with a target towards 1.1720 support area.
