The EUR/USD weekly forecast is slightly bearish, as resilient inflationary pressures in the US will likely keep the dollar strong.
Ups and downs of EUR/USD
In the US, upbeat inflation data led to a drop in rate cut expectations. Meanwhile, in the Eurozone, there were mixed signals. ECB President Lagarde was against early cuts. On the other hand, Francois Villeroy said it would be better to start early and cut rates gradually.
EUR/USD weekly technical forecast: Bears pause at 1.0724 support
The last time the price encountered the 1.0724 support, it reversed, breaking above the SMA to make a higher high. Therefore, there is a chance the bias will shift if bullish momentum strengthens at 1.0724. However, the RSI must go above 50 and the price above the SMA for the current move to reverse. Otherwise, bears will breach the 1.0724 support to retest the 1.0501 support.
Although there was a poor retail sales report, the Friday PPI report confirmed that US inflation was higher than expected. Meanwhile, the Euro strengthened on hawkish remarks from the ECB’s Francois Villeroy. Francois said the sooner the central bank started cutting rates, the better. This way, they can do it gradually.
Next week’s key events for EUR/USD
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