- Industrial Production: Monday, 10:00. Eurozone industrial production has rebounded with two straight readings above 2 percent, but a downturn is expected, with a forecast of -0.4%.
- German ZEW Economic Sentiment: Tuesday, 10:00. Investor confidence jumped from 55.0 t0 61.8 in January, marking a 4-month gain. Another strong release is expected, with a street consensus of 61.0.
- Eurozone GDP: Tuesday, 10:00. The Covid pandemic has resulted in huge swings in the economy, with GDP readings of -12.1% and +12.6% in Q2 and Q3 of 2021, respectively. The economy is expected to level off in Q4, with an estimate of -0.7%.
- French Final CPI: Friday, 7:45. Inflation in the eurozone’s second-largest economy remains weak. The index has gained 0.2% in the past two months, and the estimate for January stands at 0.2%.
- PMIs: Friday, 8:15 in France, 8:30 in Germany, and 9:00 for the whole eurozone. Germany’s manufacturing sector continues to show strong expansion, with the January PMI coming in at 57.1. The eurozone Manufacturing PMI is expected in at 54.6, little changed from 54.8 beforehand. France came in at 51.6 and is forecast to tick higher to 51.7, pointing to slight expansion. The services sector has been in contraction with Germany and the eurozone estimated at around the 46- level. France is also expected to decline, with an estimate of 47.0.
EUR/USD Technical analysis
Technical lines from top to bottom:
We start with resistance at 1.2494.
1.2325 is next.
1.2250 has held in resistance since April 2018.
1.2140 is next.
1.2002 (mentioned last week) is protecting the symbolic 1.20 line.
1.1846 is the final support line for now.
.
I remain neutral on EUR/USD
The eurozone economy has been struggling, and the Covid-19 has been beset by logistical challenges. In the US, the massive stimulus program is winding its way through Congress, which could weigh on the US dollar.
Further reading:
- EUR/USD forecast – for everything related to the euro.
- USD/JPY forecast – projections for dollar/yen
- AUD/USD forecast – predictions for the Aussie dollar.
- USD/CAD forecast – Canadian dollar analysis
- Forex weekly forecast – Outlook for the major events of the week.
Safe trading!