EUR/USD coiling around 1.1900 handle

• Eurozone ’s Sentix index came below estimates at 19.2 in May while German factory orders fell to -0.9% month-on-month in March.
• The set of speeches in the US session should not bring new information regarding monetary policy. 

The EUR/USD is trading at around 1.1910 down 0.45% in Monday's trading. 

The single currency dropped below the 1.1900 handle earlier in the European’s session as the Eurozone Sentix index came below expectations at 19.2 against 21.1 in May while the German factory orders fell to -0.9% month-on-month in March versus 0.5% expected by the market. The currency pair is expected to be driven by sentiment and investors adjusting their positions after the important data released last week. On Friday the US non-farm payroll and wage growth came below expectations while the FOMC statement confirmed that the inflation in the United States was on track to reach the target.

The EUR/USD weakness persists as the USD demand is driven by the Federal Reserve Bank expectations to normalize monetary policy and hike at least three times in 2018. On the other hand, the recent string of worst-than-expected Eurozone data makes investors wonder if the European Central Bank can actually keep a hawkish tone in future meetings.

Monday is marked by several Fed’s officials speaking with speeches of rather academic nature. Richmond Federal Reserve Bank President Tom Barkin is set to speak at George Mason University in Fairfax in Virginia at 18:00 GMT while Dallas Federal Reserve Bank President Robert Kaplan will be talking about "Learning About an ML-Driven Economy" at 19:30 GMT. Scheduled at the same time will be the Chicago Federal Reserve Bank President Charles Evans who is scheduled to speak at the Federal Reserve Bank of Atlanta conference titled "Machines Learning Finance. Will they Change the Game?" in Florida at 19:30 GMT. 

It is worth noting that Powell’s Tuesday’s speech will carry much more weight and will be closely watched by investors as the President of the Fed will testify for the first time on the Semiannual Monetary Policy Report before the House Financial Services Committee in Washington DC.

EUR/USD 4-hour chart 

The trend is bearish and immediate support is seen at 1.1900 and at 1.1817 swing low (December 22, 2017). To the upside, resistance is priced in at 1.1950 supply level and at 1.2000 psychological level.