EUR/USD has been quite corrective in nature which has shown some impulsive bearish pressure inside the range between 1.1660 to 1.2040 area. USD has been quite positive with the economic reports recently which lead to further bearish pressure in the pair against EUR. The recent situation in Spain has been quite a bit of pressure for the Euro but the currency is expected to overcome the obstacles and regain the momentum again. Ahead of the ECB and Minimum Bid Rate report on Thursday the market is expected to be quite corrective and volatile whereas after the events the pair is expected to show some directional move in the coming days where the bearish pressure is more probable. Today EUR German Buba Monthly report is going to be published which is expected to be quite neutral in nature and have minimal effect on the market. Tomorrow there is a number of economic reports to be published on EUR has well but all the economic reports are expected to have a minimum impact this week prior to ECB meeting. On the USD side, today we do not have any USD economic event or reports to be published but on Thursday, which is at the same day of the ECB meeting and Bid rate report, Unemployment Claims report is going to be published which is expected to show an increase to 236k from the previous figure of 222k. As of the current scenario, the pair is expected to be quite volatile this week due to some important economic events and reports are going to be published. The pair is expected to continue its sideline trend for a few days now which is expected to show an impulsive pressure by Thursday to indicate the upcoming directional move in the future.
Now let us look at the technical view, the price is currently residing inside the lower part of the range of 1.1660 to 1.2040 area whereas the price has also broken below the dynamic level of 20 EMA support with a daily close which is expected to push the price lower towards 1.1660 and later towards 1.1500 support area. The price has bounced off the midrange resistance area of 1.1850, as the price remains below the 1.1850 resistance area in the coming days the bearish pressure is expected to continue further.