Any rallies will be viewed as entry levels for selling EUR/USD

This is busy week for euro with one high impacted news event - on Tuesday morning we will see ZEW German business confidence data which is expected to remain the same as last month’s figure: 63.9. And the figure which comes in below the expectations could prompt weakness.

"Industrial production data for the Eurozone is out on Wednesday; given with last week’s poor figures from France and Germany, this is likely to be a disappointing figure on the whole," says Carl Hasty at Smart Currency Business.

Technical analyst Karen Jones with Commerzbank told that EUR/USD to be side-lined around the 1.1000 area but it may still slip towards lows at 1.0819/08 this week: "Failure there is needed to trigger losses towards 1.0524/1.0457, the base of the 30 year channel and March low. Minor resistance is found 1.1000 ahead of 1.1129, the late July high. While it caps, we will retain a negative bias. Above it lies the 1.1216 July high. Medium term we continue to look for EUR/USD to remain capped by the May and June highs at 1.1440/68."

Any rallies will be viewed as entry levels for selling EUR/USD by speculative traders.