EUR/USD Price Analysis: Drops to near 1.1000 as Eurozone eyes recession, US Inflation in focus

• EUR/USD has extended its correction to near 1.1000 as investors await US Inflation for further guidance.
• S&P500 futures are showing nominal losses after a choppy trade, portraying caution ahead of US debt ceiling talks.
• German Industrial Orders dropped sharply, suffering heavily from global interest rate hikes, which have impacted demand for automobiles.

The EUR/USD pair has corrected sharply to near the psychological support of 1.1000 in the early Tokyo session amid a recovery move in the US Dollar. The Euro remained under pressure on Monday after worse German Industrial Orders data. The economic data fell by 10.7%, suffering heavily from global interest rate hikes, which have impacted demand for automobiles. Also, the Gross Domestic Product (GDP) figures, Retail Sales, and exports were downbeat in March, strengthening signs of recession in the economy.

S&P500 futures are showing nominal losses in the Asian session after a choppy trade, portraying caution ahead of US debt ceiling talks. The US Dollar Index (DXY) is looking to extend its recovery above 101.40 as the focus has shifted to the US Inflation data, which is scheduled for Wednesday.

EUR/USD is auctioning in an Ascending Triangle chart pattern on a four-hour scale, which indicates a sheer contraction in volatility. The upward-sloping trendline of the aforementioned chart pattern is placed from April 17 low at 1.0924 while the horizontal resistance is plotted from April 14 high at 1.1076.

A sideways action from the 20-period Exponential Moving Average (EMA) around 1.1024 is hinting at a lackluster performance by the shared currency pair.

The Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, signaling that investors are awaiting a potential trigger for decisive action.

Going ahead, a downside move below May 02 low at 1.0942 will drag the asset towards April 12 low at 1.0915 and April 10 low at 1.0837

On the flip side, a decisive move above April 26 high at 1.1095 will drive the asset toward a fresh 13-month high at 1.1185 followed by the round-level resistance at 1.1200.

EUR/USD four-hour chart