Downside economic surprises from Germany and France have put EUR/USD under pressure and left the market suspecting the ECB will have to await its July meeting to make any announcement on QE tapering. The disappointing industrial output figures from eurozone's two largest economies have reminded traders of the slowdown that is still gripping the bloc.
Growth concerns may also contribute to dimmer ECB economic projections and a more dovish rate outlook.
Reasons for EUR/USD traders to be long are far and few between and should temper gains heading into next week's meeting.
The recent rally's sharp rejection into the 1.1850 area is likely a warning to bulls that they are on the wrong side of the market for now.
The falling RSI on daily charts and the inverted hammer candle put in place on Thursday have technicals warning bulls as well.
EUR/USD could settle into the 1.1500/1.1850 range until the ECB meeting.
Should a very dovish message emerge, May's low is in play.
If cleared, 1.1300 and 1.1100 are eyed.
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