EUR/USD bounced off from the 1.0550 support with an impulsive bullish pressure last week. Today after opening with a GAP, the pair has shown some bullish rejection for the whole day and is heading towards the recent support at 1.0630-40 area. Today, the EUR was fundamentally a bit weak amid a negative report on Italian Industrial Production at -2.3% which was expected to be at -0.6%. Besides, ECB President Mario Draghi is currently having a speech about future interest rates decisions. As of the expectations, no changes in the ECB interest rate is expected in the nearest months that might negatively affect the EUR. On the USD side, a labor market condition index report will be posted which previously was at 1.3. However, this report is expected to have low or no effect on the pair today.
Now let us look from the technical viewpoint. After the GAP market was seen rejected, the bulls in the market and currently the market is heading down towards the nearest support at 1.0630-40 area. If we see any bearish rejection price action off the 1.0630-40 support area, we will be looking forward to buying this pair with a target towards 1.0800-50 resistance area.