EURUSD - Pullback Before an Up Move

The Euro lost some ground against the Dollar this week again. This happened after the Dollar had been somewhat weakening last week.

Why is that?

• Data from the US showed people spent less money than expected last month. This surprised markets and made the Dollar seem less risky.
  
• There are also upcoming data* from the US that could be good for the Dollar. Investors are waiting to see this data before making big bets on the Euro.
  
• A European Central Bank official hinted at a possible interest rate cut later this year. This could weaken the Euro in the long run.
  

Here are some other things to know:

• The Dollar is still stronger than it was a few weeks ago.
  
• The US Federal Reserve may not cut interest rates as soon as some people thought.
  
• The European economy is growing slowly, but inflation is falling.
  

*Data: the Producer Price Index (PPI) and the Michigan Consumer Sentiment Index.

Comment:

And from a technical analysis standpoint, we see Euro to push up to 1.0805 price zone and then reverse down to the 1.0750 price zone to push further up later on to 1.8450 price level (purple zone on chart).