The pair continued to trade in a range of 1.0707/1.1059 last week and outlook is unchanged.
Initial bias stays neutral this week first but i will be favoring more momentum to the downside for a retest. Below 1.0709 support will turn bias to the downside for 1.0461/0513 support zone.
Meanwhile, above 1.1058 resistance will bring another rise. Overall, we’re treating price actions from 1.0461 low as a corrective pattern. Hence, in case of further rebound, we’d expect strong resistance around 38.2% retracement of 1.3993 to 1.0461 at 1.1810 to limit upside and bring down trend resumption eventually.
Fundamentally the euro remained on the defensive after European Central Bank Mario Draghi signaled on Thursday that fresh easing measures could be rolled out as soon as the bank’s next meeting in March.
In the week ahead, investors will be looking to Wednesday’s Fed policy statement for any indication that the bank is considering slowing the path of interest rate increases this year.
Markets will also be looking to Friday’s data on U.S. fourth quarter gross domestic product, which is expected to show that growth slowed to a modest 0.8% from 2.0% in the third quarter.