EUR/USD Forecast: correction to accelerate above 1.0700

The American dollar eases against all of its major rivals at the beginning of the week, with no major data released overnight. Denting investors' sentiment are diminishing hopes for a deal among worldwide oil producers to cut production, after Saudi Arabia announced it won't meet today with non-OPEC producers, as it wants to focus on having consensus within the organization first. US yields are down with the 10-year Treasury yield down around 5 basis points, further weighing on the greenback.

The EUR/USD pair advanced up to 1.0685 so far today, holding a few pips below the level, but with the greenback having decelerated its decline after London's opening. So far, the EU released its monetary developments for October, which showed that the annual growth rate of the broad monetary aggregate M3 decreased to 4.4% in the month, from 5.1% in September. Private loans stood at 1.8%, matching previous month's reading, but below expectations of 1.9%.

Technically, the movement remains corrective, as the price remains below the 23.6% retracement of its latest daily slide, around 1.0700, the immediate resistance. In the 4 hours chart, the price has advanced above a still bearish 20 SMA, while technical indicators are losing their upward strength and turning flat near overbought levels, suggesting limited buying interest at this point.

Nevertheless, a rally through the mentioned resistance should lead to additional gains, up to 1.0745, November 17th high, n route to 1.0815, the 38.2% retracement of the same slide. The immediate support on the other hand comes at 1.0625, Friday's high, followed by 1.0585 and the 1.0550 region.

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