- German ZEW Economic Sentiment: Tuesday, 9:00. This confidence indicator should be treated as a market-mover. Confidence on the part of major investors and analysts has been sinking, with the indicator falling to -44.1 in August. The estimate for September stands at -38.0.
- Eurozone Inflation Data: Wednesday, 9:00. The eurozone released initial inflation readings in late August, with CPI coming in at 1.0% and Core CPI rising 0.9%. No change is expected in the final readings, which will be released this week.
- Current Account: Thursday, 8:00. The eurozone current account surplus was unusually weak in July, narrowing to EUR 18.4 billion, down from 29.7 billion a month earlier. This was the lowest surplus recorded so far this year.
- Consumer Confidence: Friday, 14:00. Consumer confidence remains low. The indicator has posted four straight readings of -7, and an identical reading is expected in September.
EUR/USD Technical analysis
Technical lines from top to bottom:
1.1390 was a stepping stone on the way up in late January and capped EUR/USD earlier.
1.1345 is next. 1.1290 has held in resistance since the first week of July.
Close by, 1.1270 was a double-bottom in December 2018.
1.1215 is the next resistance line.
1.1119 (mentioned last week) is next.
1.1025 remained relevant last week and ended the week in a support role.
1.0950 is next.
1.0829 has held in support since April 2017.
1.0690 is the final support level for now.
I remain bearish on EUR/USD
The eurozone continues to struggle, as weak global conditions and the U.S-China trade war have taken a heavy toll on the manufacturing sector. Meanwhile, the Brexit crisis is only getting deeper, as a withdrawal deal with London remains elusive. with just five weeks until the U.K. is scheduled to set sail from the EU.
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