EURUSD: Another Leg Higher?

Euro started the day strong at 1.339 approaching the monthly high at 1.1347 from Friday. Fed funds futures are currently pricing in three rate cuts for 2019. I believe that the longer the trade war goes on, and tariffs are in place against China, the more likely is that the Fed will cut rates. Interest rates in EU are expected to remain at current levels at least through H1 2020. Today we are waiting the European Central Bank President Draghi scheduled to speak at 08:15GMT, and the US Consumer Price Index (CPI) data for the month of May scheduled at 12:30GMT, both events will affect the EURUSD price.

On the technical side, the bullish momentum sketched the previous week is still intact today as the pair breached in Asian session the 50 hour moving average and now an attempt at 1.1347 monthly high looks possible, a break above can drive prices up to 1.1367 the 200 day moving average. Immediate support for the pair stands at 1.13 round figure while more bids will emerge at the 100 day moving average at 1.1273 and then 1.1218 the 50 day moving average.