EUR/USD has been trading flat since Monday with low price, 28-pips and 1.1788 high. On technical level, the pair is still sold off with daily downtrend and expectations for further downside action. On the upside, euro bulls should be contaminated at 10-EMA at 1.1800 level along with yesterday's upper daily wick. The pair could test daily rising trend line at 1.1740 level, and in case EUR/USD closed below it, then further dips are expected.
On the fundamental level, markets await German ZEW sentiment which will be released shortly and expectations that the sentiment could call behind at 17.4. On NY opening sessions, the US is due to release its Producer Price Index which could shake the market a bit as eyes will be focused on Wednesday and Thursday with FOMC and ECB meeting.
On the other hand, Draghi will cross wires today, but taking into consideration the ECB event on Thursday, the speech should be neutral without any major effect. As for tomorrow, it is highly anticipated that the US Fed will hike rates at 1.50% with 0.25% point basis which should add more pressure on the pair temporary till markets take an action on the FOMC statement.
EUR/USD Technical Overview
Closing price: 1.1769
Target price: None
Resistance levels: 1.1800, 1.1880, 1.1860*
Support levels: 1.1720-1.1709*, 1.1640
Trend: Sideways / Down
Trend reversal price: 1.1860*
Current None 11881, 11910, 11954* 11807-11799*, 11728
Sdwys/Down
Comment: The current slide puts short term trend forces down and warns for a larger unfolding selling wave to 1.1640. Trade is poised for selling and a close under 1.1709* will fuel selloffs. Trade may recover for near term congestion up near 1.1820. However, a close over 1.1860* is needed to highlight a reversing upturn for a bull wave over 1.1920+.