EUR/USD daily chart with support and resistance lines on it. Click to enlarge:
- ECB Financial Stability Review: Monday, 9:00. This report, which is released twice a year, provides details about the stability of the financial system. Investors will be looking for any hints regarding future monetary policy.
- Inflation Report: Wednesday, 10:00. Inflation remains low in the eurozone, reflective of weak economic conditions. The headline figure came in at -0.3% in September, a second straight decline. Another contraction is projected for October, with an estimate of 0.3%. Core CPI is estimated at 0.2%. Both readings are expected to confirm the initial reads from earlier in the month.
- Current Account: Thursday, 9:00. The eurozone continues to post current account surpluses. In August, the surplus reached EUR19.9 billion, up from EUR16.6 billion. Will the upswing continue in September?
- Consumer Confidence: Friday, 15:00. Consumer confidence remains mired in negative territory, as consumers remain apprehensive about the economy. The indicator edged down to -16 in October, its lowest level since April. The downturn is expected to continue in November, with a forecast of -18.
EUR/USD Technical analysis
Technical lines from top to bottom:
We start with resistance at 1.2136.
1.2046 is an important monthly line of resistance.
1.1936 is next.
1.1877 remains relevant.
1.1744 is the first line of support.
1.1648 is next.
1.1573 (mentioned last week) has provided support since July.
I am bearish on EUR/USD
The eurozone economy remains weak, and if the EU fails to reach a deal with the UK over Brexit, the euro could lose ground.
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