The EURUSD pair is on the rally at the start of this week going into tomorrow's busy schedule which includes an ECB meeting, US CPI inflation and FOMC minutes, as well as the emergency EU Summit on Brexit.
Given that the other 4 days of this week are pretty much quiet with no high-risk events, all the focus of traders and investors is on tomorrow’s events which could set trends in the Forex market that will last for the next 1 - 2 weeks.
The EURUSD pair will be parituclarly affected with the 3 key events taking place on the same day. The bias for the pair - both technical and fundamental - remains bearish aside from there being some minor support in the 1.1200 area and slightly below it. But, if tomorrow’s events confirm that odds are against the Euro it is possible that EURUSD will finally make a bearish breakout and the 1.1200 support will be cleared.
The ECB will need to send a clear dovish message once again to help EURUSD fall and that is likely to happen given the continued weakness in the EU economy. From the USD side, it will be important CPI inflation to roughly within the consensus expectations with no big negative surprises.
In such a scenario with a strong dovish signal from the ECB and a neutral-firm US Dollar, EURUSD is likely to head lower again, at least to revisit the lows at 1.1200.
