EUR/USD Forecast: Bearish Pressure To Aggravate Below 1.1575 Zone

The EUR/USD pair held near the lower end of its 7-day old trading range and was seen oscillating in a narrow range, around the 1.1600 handle, through the Asian session on Monday. Friday's upbeat ISM non-manufacturing PMI print, coming in at a 12-year high, helped offset smaller-than-expected rebound in the October jobs data and extended support to the US Dollar. 

Today's release of the final Eurozone PMI prints, along with Sentix Investor Confidence and German factory orders data would be looked upon for some impetus during European session. From the US, there is little in terms of any major market moving economic releases and hence, the overall bullish sentiment surrounding the greenback might continue exerting some selling pressure at the start of a new trading week. 

Even from a technical perspective, the pair on Friday confirmed a bearish break below a bearish flag chart pattern formation and remains vulnerable to extend its downward trajectory in the near-term term. With short-term indicators still far from being oversold, bears should be eyeing for a sustained break through the 1.1585-75 immediate support. 

Below the mentioned zone, the pair is likely to accelerate the fall toward the key 1.15 psychological mark before eventually dropping to its next major support near mid-1.1400s, coinciding with the 100 percent Fibonacci expansion level of the 1.2092-1.1669 downfall and its subsequent rebound. 

On the flip side, immediate resistance is now pegged near the 1.1630 region, support-turned-resistance, and any subsequent recovery attempts might now be capped near the 1.1660-65 zone.