Unexpectedly weak readings from the US economy, which met at the end of the week supported the single currency, which ultimately strengthened by only 0.16%. Data from overseas suppressed the hawkish comments of FOMC members who suggested this year's increase in interest rates. Market expectations related to the action by the Federal Reserve shifted to the first half of 2016. This does not mean, however, that in the long term the dollar will lose against the euro. Apart from the fact weaker readings in the US, it is worth to move our attention to data from Europe. Poor readings of inflation will increase pressure on the ECB, which will be forced to further action in order to save the European economy.
In the coming week we do not have too much data. Investors will pay particular attention to Monday's ISM index for services in the US, in the context of last week's weaker readings.
Forecast for Monday:
The currency pair after Friday's "confusion" once again located around the support at 1.12. An important resistance remains 1.1240 level. On Monday we have a series PMI for the Eurozone, but the most important figure of the day remains the ISM index for services in the US.
Therefore, we may be witnessing the return at around the level of 1.1240. Additional support for demand will be good data from Europe. Later in the session, the market will look forward to data from the US. Worse readings may become an impulse to break in / at resistance and return to the vicinity of the last high of 1.1317.
Otherwise the weaker PMI readings for the Eurozone, may allow the supply side, to push EUR / USD towards support at 1.1155. If you also know the good readings from overseas, the supply without any problem will head towards support at 1.1115.
In the coming week we do not have too much data. Investors will pay particular attention to Monday's ISM index for services in the US, in the context of last week's weaker readings.
Forecast for Monday:
The currency pair after Friday's "confusion" once again located around the support at 1.12. An important resistance remains 1.1240 level. On Monday we have a series PMI for the Eurozone, but the most important figure of the day remains the ISM index for services in the US.
Therefore, we may be witnessing the return at around the level of 1.1240. Additional support for demand will be good data from Europe. Later in the session, the market will look forward to data from the US. Worse readings may become an impulse to break in / at resistance and return to the vicinity of the last high of 1.1317.
Otherwise the weaker PMI readings for the Eurozone, may allow the supply side, to push EUR / USD towards support at 1.1155. If you also know the good readings from overseas, the supply without any problem will head towards support at 1.1115.