EUR/USD: Bulls struggle with 1.1950 heading into a Big week

The EUR/USD pair extended its range-trade around mid-1.19s in the Asian trades, having found strong bids near 1.1920 levels amid renewed USD selling across the board.  

EUR/USD: FOMC, German election in spotlight                      

The spot is seen defending a minor-bid, as we head towards the early European trading, with the bulls facing stiff resistances just ahead of 1.1950 levels. A sense of caution set into the markets ahead of the Eurozone final CPI figures due out later today.

Additionally, dovish remarks delivered by the ECB policymaker Peter Praet over the weekend, also continue to keep the upside restricted in the Euro against its American counterpart. ECB”s Praet said in a newspaper interview on Saturday that a substantial monetary stimulus is still necessary.

In the week ahead, investors eagerly look forward to the FOMC monetary policy decision and outcome of the German election for the next direction on the major. Meanwhile, the pair remains underpinned, as the US dollar continues to nurse downbeat US retail sales induced losses, despite higher Treasury yields and tightening yield curve.

EUR/USD Technical Set-up  

Valeria Bednarik, Chief Analyst at FXStreet explained: “Short term, the 4 hours chart  shows that the price has managed to recover above its 20 and 100 SMAs that anyway converge within a tight range, around 1.1910, whilst technical indicators have reentered positive territory by the end of the week, but lack enough momentum to support a new leg north. Support levels: 1.1920 1.1860 1.1825 Resistance levels: 1.1965 1.2000 1.2045.”