The currency pair has tested the ascending trend line and the support at 1,1303 last week. EUR/USD managed to break down those lines. The main drivers for this downside move were weaker than expected Eurozone data and Brexit.
As for the interesting data, we would like to underline Eurozone production index that has shown negative growth (-0,9%). German economy has shown zero growth for the reported period. Economists expected this indicator to grow to 0,1%/
US data was not positive as well. CPI index was 0%. Economists expected this indicator to grow to 0,1%. Retail sales declined sharply as the indicator fell to -1,2%. Economists expected this index to stay at 0,1% level. PPI index has grown and reached -0,1% as compared to the previous reading. However, experts expected this index to grow up to 0,1%.
FOMC representatives commented the current situation and mentioned that they expect the FOMC to rise rates once this year.
What do we expect the next week? We think that EUR/USD is going to grow as we have a reversal pattern on the daily chart (Hammer). There are no reasons for significant decline currently. Closest targets are the following – the ascending trend line and the next resistance area at 1,1515.
As for the interesting data, we would like to underline Eurozone production index that has shown negative growth (-0,9%). German economy has shown zero growth for the reported period. Economists expected this indicator to grow to 0,1%/
US data was not positive as well. CPI index was 0%. Economists expected this indicator to grow to 0,1%. Retail sales declined sharply as the indicator fell to -1,2%. Economists expected this index to stay at 0,1% level. PPI index has grown and reached -0,1% as compared to the previous reading. However, experts expected this index to grow up to 0,1%.
FOMC representatives commented the current situation and mentioned that they expect the FOMC to rise rates once this year.
What do we expect the next week? We think that EUR/USD is going to grow as we have a reversal pattern on the daily chart (Hammer). There are no reasons for significant decline currently. Closest targets are the following – the ascending trend line and the next resistance area at 1,1515.