EUR/USD has been quite volatile lately which recently showed bearish impulsiveness after the FOMC Statement and Federal Funds rate report was published. EUR/USD has struggled to break above the 1.2050 resistance level which leads to further bearish pressure which is expected to continue further in the coming days. As of the German Election yesterday Merkel has won a majority of the votes as expected yet the result to be published and the effect is expected to remain for weeks. Today German Ifo Business Climate report was published with a decrease to 115.2 from the previous figure of 115.9 which was expected to have a slight increase to 116.0. On the USD side, today FOMC Member Dudley and FOMC Member Evans are going to speak about the interest rate decision and upcoming monetary policies which are expected to have a moderate impact on the market today. To sum up, EUR has shown weakness already after the German Election this week which is expected to continue further whereas USD has been quite hawkish in nature recently and have high impact economic reports like Quarterly GDP to be published this week. Until EUR comes up with positive economic reports to shake out the USD gains, USD is expected to gain more in the coming days.
Now let us look at the technical view, the price is currently residing below 1.1900 resistance level after the pair started the week with a bearish GAP today. Though the GAP has been filled already and the price rejected the bull off the GAP area which is expected to lead the price further down towards 1.1710 support level in the coming days. As the price remains below 1.1900 with a daily close the bearish pressure is expected to continue further.