In December, European inflation reached a record high, up 5% over the year before. The US Federal Reserve has pointed to more aggressive measures to contain inflation. Although the EUR/USD remains above 1.1300, buyers may soon give up. The EUR/USD weekly forecast is bullish as the pair shed off losses and ended the week on a positive note, just below the recent swing highs. –Are you interested to learn more about AI trading brokers? Check our detailed guide- There were a few surprises in the first week of 2022 for the EUR/USD pair, but it remained largely unchanged. Among the biggest shocks was when the American central bank released minutes of its December meeting, which showed policymakers were considering cutting their bonds. According to the Fed, if the current improvements in the labor market persist, the conditions for a rate hike are likely to be met relatively soon. Next came the December nonfarm payroll report. The US created 199,000 new jobs in December, half of the market expected. On the other hand, the unemployment rate improved and fell to 3.9%. While the numbers were not impressive, market participants still considered them acceptable. Get FREE Forex Signals Now! In December, the euro area’s inflation rate grew by 5%, a new record high after the last month at 4.9%. Also, German consumer prices rose 5.3% compared to the forecast of 5.2%. Inflation is pushing the European Central Bank to reconsider its conservative stance. In the wake of Omicron, an outbreak of the coronavirus variant, the economic slowdown began before the beginning of the year. The current strain of Covid is spreading like wildfire, and while the number of deaths and hospitalizations is still low, it continues to put a strain on the economy. Key data/events for EUR/USD next week Next week will see the January Sentix investor confidence report and November industrial production figures. In addition, the country will report the final consumer price index for December, and retail sales will rise by 0.3%. In addition, a preliminary estimate of the Michigan Consumer Sentiment Index for January will be released. –Are you interested to learn more about Canada forex brokers? Check our detailed guide- EUR/USD weekly technical forecast: Bearish flag pattern Since mid-November, the EUR/USD pair has hovered around the 1.1300 level. Although the pair closed the week above 20-day and 50-day SMAs, the price is still below the 1.1385 (recent point of rejection). Meanwhile, we can clearly see a bearish flag pattern on the chart, showing that recent upside movement is not enough to trigger a bullish reversal. Therefore, further trading opportunities can be found on the flag pattern breakout. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal EUR/USD Forecast share Read Next USD/JPY Weekly Forecast: Paring Gains Despite a Big Rally Above 116 Saqib Iqbal 2 weeks In December, European inflation reached a record high, up 5% over the year before. The US Federal Reserve has pointed to more aggressive measures to contain inflation. Although the EUR/USD remains above 1.1300, buyers may soon give up. The EUR/USD weekly forecast is bullish as the pair shed off losses and ended the week on a positive note, just below the recent swing highs. -Are you interested to learn more about AI trading brokers? Check our detailed guide- There were a few surprises in the first week of 2022 for the EUR/USD pair, but it remained largely unchanged. Among the… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.