EUR/USD Outlook (23 April 2021)

Overall, EUR/USD is trending upwards.

During the monetary policy meeting yesterday, the European Central Bank (ECB) held its monetary policy unchanged. The Pandemic Emergency Purchase Programme (PEPP) will still continue with a total envelope of €1,850 billion until at least the end of March 2022 while the Asset Purchase Programme (APP) will continue at a monthly pace of €20 billion. The central bank also expect purchases under the PEPP to increase in the coming months. Although ECB President Lagarde acknowledged that progress has been made in the recovery of the eurozone economy, it is still early at the moment to cut back on bond purchasing.

The French flash PMI data will be released later at 1515 (SGT).

• French Flash Service PMI (Forecast: 46.6, Previous: 48.2 revised from 47.8)
  
• French Flash Manufacturing PMI (Forecast: 59.0, Previous: 59.3 revised from 58.8)
  

The German Flash PMI data will be released later at 1530 (SGT).

• German Flash Services PMI (Forecast: 51.1, Previous: 51.5 revised from 50.8)
  
• German Flash Manufacturing PMI (Forecast: 65.8, Previous: 66.6)
  

The eurozone flash PMI data will be released later at 1600 (SGT).

• Flash Manufacturing PMI (Forecast: 62.0, Previous: 62.5 revised from 62.4)
  
• Flash Services PMI (Forecast: 49.1, Previous: 49.6 revised from 48.8)
  

EUR/USD’s next support zone is at 1.19700 and the next resistance zone is at 1.21500.
Look for short-term selling opportunities of EUR/USD up until the release of the series of eurozone PMI data.