EUR/USD has been quite bearish in nature after the break and retest off the 1.1660. USD has been quite positive with the economic reports recently which helped the currency to gain some momentum against EUR. Recently US Non-Farm Payroll report was published with better than previous figure of 261k from the previous figure of 18k though it was not quite good as expected at 312k and Unemployment Rate report was published with better than expected value at 4.1% which was expected to be unchanged at 4.2%. Today FOMC Member Dudley is going to speak about the nation’s key interest rates which is expected to be hiked in December. He will also expand on the future monetary policy. On the other hand, today German Factory Orders report was published with a decreased figure at 1.0% from the previous value of 4.1% which was better than expected value of -1.0%. The Spanish Services PMI report was published with worse figure at 54.6 from the previous figure of 56.7 which was expected to be at 55.7. Besides, the Italian Services PMI report was published with decreased figure of 52.1 from the previous figure of 53.2 which was expected to be at 53.1, while the French Final Services PMI was published with a slight decrease figure at 57.3 which was expected to be unchanged at 57.4. The German Final Services PMI report was published 54.7 which was expected to be unchanged at 55.2. The Final Services PMI report was published with a slight increase to 55.0 which was expected to be unchanged at 54.9. The Sentix Investor Confidence report was published with significant increase to 34.0 from the previous figure of 29.7 which was expected to be at 31.2 and PPI report was also published with an increase to 0.6% from the previous value of 0.3% which was expected to be at 0.4%. Along with these mixed economic reports today the Eurogroup Meeting is already in process which is expected to have neutral result for the currency. As of the current scenario, USD is expected to gain momentum further against EUR as of the mixed economic reports and neutral view of the upcoming policies of the Eurozone.
Now let us look at the technical view. The price is currently residing below the resistance level of 1.1660 whereas the dynamic level of 20 EMA is also showing downward slope indicating further downward move in the coming days. After the positive Employment and NFP report on Friday, USD has been quite strong with the momentum which engulfed the recent price action. As the price remains below 1.1660 with a daily close the bearish momentum is expected to continue further with target towards 1.13 support level.