- Outlook EUR / USD shows constant expectations of consumer inflation in the eurozone.
- Consumers expect the inflation of the eurozone on average 2.6% in the following year.
- Preliminary American GDP detected a spread of 3.3%, greater than a forecast of 3.1%.
The prospects of EUR / USD shows that the euro recovery after the ECB research revealed consumer inflation expectations. However, the currency drew at the previous session after the data ruined us briefly reinforced the dollar.
The ECB survey revealed that consumers expect the inflation of the eurozone on average 2.6% in the following year. This is unchanged from June expectations. Moreover, this means that the European Central Bank can maintain interest rates at 2.0%. Therefore, traders do not expect a rates in September.
Meanwhile, the dollar got a little relief on the previous session after the data revealed solid economic growth. The preliminary GDP detected spreading from 3.3%, greater than a forecast of 3.1%. The data was alleviated by recent concerns about the state of economics. He also facilitated pressure on Fed at lower borrowing costs. In addition, the unemployment claims have fallen more than expected, mitigating worries about rapid slowdown in the labor market.
However, Greenback goes for monthly loss against euros due to an increase in expectations to reduce the rate. The traders are now looking forward to the report of nonfarm payrolls next week that will continue to shape the look for reducing feet.
EUR / USD Key events Today
- American Core PCE Index Price M / M
EUR / USD Technical Outlook: Attempted attempts to resilience range
On the technical side, EUR / USD price trades above 30ths, with RSI above 50, suggesting Bikovska bias. However, in a larger extent, the price trades in consolidation between the support of 1,1600 and resistance levels of 1,1700.
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Initially, the trend turned Bullish after meeting 1,1400 levels of support. However, the corrective phase began soon after the bulls did not break over the level of resilience at 1,1700. Since then, they have made several attempts to choose from consolidation, but failed. At the same time, the RSI made lower high, indicating the fading of the barren swing.
If the bulls regain strength, the price can finally break out of consolidation and continue the Usttrend. On the other hand, if they do not, bears could take over and re-set support level of 1,1400.
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