This week EUR is expected to struggle further against USD as the economic calendar contains few market-moving data from the eurozone. USD is going to extend impulsive gains.
The eurozone is going through an economic slowdown. Besides, Brexit is to blame for uncertainty in the long term. EUR finds it difficult to maintain the momentum it had in the market earlier. This week trading activity is going to be quiet because of holidays like Easter Monday and Liberation Day in Italy. In this context, EUR has no reasons to grow versus USD this week. Additionally, the eurozone's Consumer Confidence report is going to be published tomorrow which is expected to be unchanged at -7. On Wednesday German Ifo Business Climate report along with the ECB Economic Bulletin will trigger higher volatility in EUR/USD.
Europe is getting ready for the trade talks with the US. So, market sentiment is going to indecisive in the coming days. Recently, an influential US Congressman has warned the EU that any Brexit arrangement that undermines Northern Ireland's 1998 peace agreement could make a negative impact on the EU-US trade deals.
On the other hand, USD growth is subdued by the dovish stance of the Federal Reserve and its intention to make a pause in the cycle of monetary tightening. Nevertheless, USD managed to sustain overall gains versus EUR. This week Advance GDP for Q1 2019 is going to be published which is expected to be unchanged at 2.2%. As the visible US trade deficit narrowed in February and Chinese trade affected the US trade and commerce, the US aims to build the pace to dominate. Moreover, US President Donald Trump and Japanese Prime Minister Shinzo Abe are due to meet in the White House for the talks on the US-Japan trade deal.
Moreover, this week US Core Durable Goods Orders report is going to be published which is expected to rise to 0.2% from the previous negative value of -0.1% and Durable Goods Orders is expected to rebound to 0.7% from the previous negative value of -1.6%. Today US Existing Home Sales report is going to be published which is expected to decrease to 5.31M from the previous figure of 5.51M.
Meanwhile, investors have optimistic expectations of the upcoming economic reports. So, USD is more advantageous to investors. USD is expected to sustain the bearish momentum in the pair.
Now let us look at the technical view. The price is currently trading below 1.1250 area after a day of indecision on Friday following the impulsive bearish pressure off the 1.1300 area. The price is expected to sink much lower towards 1.1050 support area in the coming days as the current bearish pressure persists and price resides below 1.1300 area with a daily close.
The material has been provided by InstaForex Company - www.instaforex.com