EUR/USD: The end of the week could be busy for the Euro

© O Financista.

By David Wagner

The pair EUR/USD marked a new low in annual 1.0890 yesterday, but has still managed to avoid recording a 7th straight day of decline.

Nevertheless, the trend remains bearish, and although the Euro stabilizes currently, the absence of any significant rebound suggests that the fall may resume at any time.

Recall that in the face of an economic calendar is very light since the beginning of the week, you can assign the fall of the EUR/USD to a strengthening of the Dollar, which has continued to rise started last week, faced with a series of statistics in above expectations.

The end of the week could prove to be lively for the Dollar and EUR/USD

However, this rise in the Dollar will be subject to several tests by the end of the week, including the CPI-US for the month of January, tomorrow at 14h30. The consensus of economists established by appears to 0.2% (as previously) in monthly data, and to 2.2% (vs. 2.3% previously) for the CPI Core annual.

The day of Friday will be even more important for the Dollar, with retail sales at 14: 30, industrial production at 15: 15, and the consumer confidence index from the University of Michigan (16h.

For retail sales, the economists forecast an increase of 0.3%, as in the previous month. The industrial production is expected to shrink by 0.2% according to the forecasts, after having already declined by 0.3% in the previous month. Finally, the consumer confidence index is expected to decline to 99.5 points after 99.8 previously.

Finally, on the european side, it should be noted that the day of Friday will also be the occasion of the publication of euro area GDP for Q4 2019. The growth is expected to be 1% as previously, annual data, and to 0.1% as previously, a quarter-over-quarter.

What are the thresholds graphs the key to watch out for ?

From a technical point of view, it should be noted that the EUR/USD pair is facing a support zone immediately composed the psychological threshold of 1.09, the hollow yesterday and also hollow 2020 at 1.0890, and the low of last year at 1.0877.

Under this threshold, few barriers will likely slow the decline before the psychological threshold of 1.08.

The increase, 1.0925 is immediate resistance, but only a return above the psychological threshold key 1.10 weaken actually the bearish view of the bottom.

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