Late last week, the pair failed to get back above the 1.11 intermediate resistance and since struggles to regain the upside momentum. In the near term, the euro dynamics could be affected by German and Euro zone ZEW data and US industrial production report. Also, the European CPI numbers due tomorrow could spur a rebound in the pair should consumer prices get back to the positive territory.
More importantly, the meeting that concludes on Wednesday may send the common currency higher as the is expected to deliver a 0.25% rate cut. This, along with downward revision in the Fed’s dot-plot may trigger a reaction in the greenback across the board. In this scenario, EURUSD could regain ground and challenge the 1.11 barrier. A daily close above this level will improve the short-term technical picture.