EUR/USD Outlook (02 September 2020)

Overall, EUR/USD is ranging across. Recently, EUR/USD broke the resistance zone of 1.19200 and bounced down from the key level of 1.20.

The euro area CPI flash estimate y/y data released yesterday indicated a strong decline in annual inflation while unemployment rate rose close to expectation.

• CPI Flash Estimate y/y (Actual: -0.2%, Forecast: 0.2%, Previous: 0.4%)
  
• Core CPI Flash Estimate y/y (Actual: 0.4%, Forecast: 0.9%, Previous: 1.2%)
  
• Unemployment Rate (Actual: 7.9%, Forecast: 8.0%, Previous: 7.8%)
  

Currently, EUR/USD is testing the support zone of 1.19200 and the next resistance zone is at 1.22100.
Look for selling opportunities of EUR/USD if it breaks the support zone of 1.19200.