EUR/USD has been quite impulsive in the bearish bias recently which led the price to reside below 1.1600 area today. Ahead of upcoming high impact economic reports from the US this week, certain gains provides some significant direction to the market.
Today, the eurozone's M3 Money Supply report was published with an increase as expected to 3.9% from the previous value of 3.7% and Private Loans was published unchanged at 2.9% which was expected to increase to 3.2%. The mixed economic reports did not quite help the currency but injected some indecision in the process.
On the USD side, today CB Consumer Confidence report is going to be published which is expected to have a slight decrease to 128.2 from the previous figure of 128.7 and S&P/CS Composite-20 HPI report is expected to decrease as well to 6.5% from the previous value of 6.8%. Ahead of the upcoming NFP, Average Hourly Earnings, and Unemployment Rate reports which are due on Friday, the market is expected to be quite volatile as the forecasts were made quite mixed.
As for the current scenario, the pair is likely to trade with higher volatility this week that is expected to provide definite pressure in the market on either side. As forecasts of the US reports are not quite good, I assume better gains in the future, besides some economic reports are also yet to be published in the eurozone. Though USD has been having the upper hand for few days, EUR is expected to gain short to medium-term momentum in the coming days of the week before the USD high impact economic reports are released.
Now let us look at the technical view. The price is currently quite impulsive with the bearish gains while Bullish Divergence has been emerging as well in the meantime. The price has been quite non-volatile with the bearish gains recently which is currently expected to retrace towards 1.1850 area before showing any further bearish momentum in the pair. As the price remains below 1.2050 area, further bearish pressure is expected in this pair.
