Euro (EUR) inched lower against the US Dollar (USD) on Monday, dragging the price of EURUSD to less than 1.1170, following the release of some key economic news. The technical bias will remain bearish because of a Higher High in the recent upside rally.
As of this writing, the pair is being traded near 1.1160. A hurdle may be noted around 1.1221, the intraday high of Friday ahead of 1.1233, the swing high of the recent upside rally and then 1.1428, the high of the giant Brexit candle which is also acting as a mother candle in the ongoing inside bars trade setup as clearly shown in the given below chart.
On the downside, the pair is likely to find a support around 1.1131, the intraday low of Friday ahead of 1.1100-1.1110, the confluence of the horizontal support and the psychological number. A break and daily closing below the 1.1100 support area shall incite a renewed selling pressure, validating the move towards the 1.0952 support area. The technical bias will remain bearish as long as the 1.1428 resistance area is intact.
Flash estimate of the seasonally adjusted gross domestic product (GDP) rose by 0.3 percent in the 19-country euro area, unchanged from the preliminary flash estimate at the end of last month, Eurostat said on Friday. The figure has fallen back from 0.6 percent in the first quarter of the year while GDP of the European Union (EU) as a whole expanded by 0.4 percent quarter-on-quarter.
Germany, the largest economy in the single currency zone, revealed a slightly stronger-than-expected 0.4 percent increase, while Spain at 0.7 percent and the Netherlands at 0.6 percent. However, France and Italy recorded zero growth.
Considering the overall technical and fundamental outlook, selling the pair on short-term upside rallies still appears to be a good strategy in the near term.