The US labor market is still showing strength. US producer prices increased somewhat more than anticipated in November. Investors are expecting rate hikes from the ECB and the Fed. The EUR/USD weekly forecast is slightly bearish as data from the US is still pointing to a strong economy. This could affect the Fed’s policy outlook. -Are you looking for automated trading? Check our detailed guide- Ups and downs of EUR/USD The past week was mostly quiet for EUR/USD as the economic calendar was light. Investors paid attention to data from the US, including the initial jobless claims and the producer price index. The number of Americans submitting new claims for unemployment benefits grew slightly, indicating that the labor market is still tight and robust. US producer prices increased somewhat more than anticipated in November. However, the trend is moderating, as annual inflation at the factory gate recorded its smallest increase in 1-1/2 years. The Labor Department’s data on Friday also revealed that, on an annual basis, underlying producer prices have been rising at their slowest rate since April 2021. Next week’s key events for EUR/USD Next week will be packed with significant news releases from the eurozone and the US. However, investors will pay more attention to the inflation readings and central bank meetings. The inflation data from the US will come before the Fed meeting, while eurozone inflation will come out after the ECB meeting. These will cause a lot of volatility for the EUR/USD. Both the ECB and the Fed will meet next week and raise rates to curb inflation. This will likely cause some volatility, especially if there are surprises. Investors are expecting hikes of 50bps from both central banks. Get FREE Forex Signals Now! EUR/USD weekly technical forecast: Weakness at the 1.0602 resistance The daily chart shows the price making, consistently higher highs, and higher lows. It is also trading above the 22-SMA showing a bullish trend. The RSI also supports buyers as it trades above 50. -If you are interested in forex day trading then have a read of our guide to getting started- Buyers have pushed off the 1.0225 support level to the 1.0602 resistance. However, the move was shallow, with many pullbacks. This is a sign of weakness. The RSI has also made a slightly bearish divergence with the price, a sign that buyers are not as strong as they previously were. This might allow sellers to come in and break below the 22-SMA. If this happens, the price will fall to the 1.0225 support. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% 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 Forecast: Japan’s Wholesale Prices Rise to 9.3% Saqib Iqbal 2 months The US labor market is still showing strength. US producer prices increased somewhat more than anticipated in November. Investors are expecting rate hikes from the ECB and the Fed. The EUR/USD weekly forecast is slightly bearish as data from the US is still pointing to a strong economy. This could affect the Fed's policy outlook. -Are you looking for automated trading? Check our detailed guide- Ups and downs of EUR/USD The past week was mostly quiet for EUR/USD as the economic calendar was light. Investors paid attention to data from the US, including the initial jobless claims and the producer… Regulated 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.