EURUSD on Bearish Free Fall Post Disappointing Macro Data on Monday

EURUSD saw slight rebound in EURO’s favor during Asian hours on Monday’s trading session. This was viewed by some as the pair gaining stability above 1.200 handle. However many still believed that EUR was open to further decline as long as USD remains strong and continues to gain strength. This was proved correct yesterday when the pair stated moving on another steep bearish decline post disappointing European macroeconomic updates. The pair has fallen into 1.19 price range, reaching as low as 1.18956 and is currently trading at 1.19113 down nearly 0.45% when compared to Monday’s session.

EURUSD Still Weak

This proves that the bearish appetite for EURO still remains strong in market and next level of stable support is available near 1.170 price range. European markets yesterday saw disappointing CPI data in Switzerland and German factory orders. Similarly Euro zone Sentix investor confidence also took to bearish hit causing the pair to go on bearish decline.  USD continues to grow strong owing to market demand driven by common belief among investors over possibility for interest rates hikes and normalization of monetary policy by US central bank in this financial year.

The bearish sentiment for EURO continues to grow as investors have began to wonder if European Central Bank will be capable of maintaining hawkish note in days to come as European macroeconomic data in recent times have failed to meet expectation. Investors are on cautious stance as they await European Union Economic Forecast released by European commission, German trade balance & Industrial production data to be released later today.

When looking at US dollar, Fed Chair Powell’s is expected to speak later today in a panel discussion at event organized by Swiss National Bank. Asian market hours is expected to remain relatively neutral while Investors await European session to gauge today’s volatility and macro data outcome before placing fresh bets as trading session proceeds further into this week. Expected support and resistance for the pair are at 1.1800/1.1700 and 1.1966/1.2009 respectively.