In among important influencing fundamental factors, Spain continued to surprise markets and analysts, by posting positive fundamentals. Following Monday's better than expected manufacturing PMI data, the Ministry of Employment and Social Security reported on Tuesday that joblessness in the country dropped in November. The number of registered workers without a job fell by 14,688 in the month under review, with the total number of unemployed reaching 4,512,116 in November. Spain's unemployment rate remained at an unhealthy elevated level, despite falling in the third quarter to 23.67% from 24.5% in the previous three-month period.
Meanwhile, Euro zone's producer prices plunged at the fastest monthly pace in a year in October, as energy costs and prices of non-durable goods fell sharply, increasing pressure on the European Central Bank to step up extra measures to extricate the currency bloc from the economic quagmire. Prices at factory gates in the Euro area dropped by 0.4% from September, the Eurostat said. October's decline in producer prices adds up to the Euro zone's wider problem with deflationary pressures. The last time factory prices rose was in June and September this year.
Markets to have close look at ECB as it makes interest rate decision on Thursday
It seems that Thursday is going to be the most important day this week for the single currency, as the major influence is going to come from the European Central Bank. It will make a decision on interest rates, which are likely to remain unchanged at record-low levels. Besides that, the ECB President Mario Draghi will hold a press-conference after the official announcement of monetary policy decisions, while the attention will be paid to the asset purchases program of the regulator.EUR/USD is trading range bound by filling triangle pattern
The long-term outlook for the EUR/USD remains bearish, as the cross has been moving downwards since the beginning of July. For the time being the pair is trading within the boundaries between 1.24 and 1.25. However, any negative impetus will push the cross down to 2014 lows around 1.2360. From another side the Euro is limited by a long-term down-trend around 1.2540; therefore, the bearish scenario is most suitable for the pair at the moment.Daily chart
From the perspective of hourly chart, the EUR/USD is approaching a decision-making point inside the triangle pattern, as it has neared the 2014 low around 1.2350 on Tuesday and has almost fully filled the pattern. We expect a break-out at the end of this week or in the beginning of the next week. However, the pair is currently limited from both sides by major obstacles, including triangle's boundaries, weekly and monthly pivot points. Meanwhile, weekly technical studies expect the break-out to happen to the south.
Hourly chart