Analysis of the euro area economy Sunday, June 27

Analysis of the euro area economy Sunday, June 27
 Eurozone inflation data will determine the EURUSD trend.

Next week, the main focus of euro traders will be on inflation data for Germany and the euro area. Eurozone inflation data are released after PMI data. Last week, the eurozone PMI data were much better than market forecasts.

In June, the German PMI and the euro area as a whole were higher than market forecasts. The IFO business climate change index was also good. Under normal circumstances, the release of such economic data could strengthen market interest rate expectations and support the EURUSD. But the European Central Bank has made it clear that rapid inflation is temporary and therefore there is no need to raise interest rates or reduce bond purchases. This means that if the eurozone inflation data is weak this week, even the most optimistic market investor will no longer expect interest rates to rise, and the euro will weaken as a result.

EURUSD Thursday, February 11

EURUSD Thursday, February 11

In the EURUSD weekly chart, the market is still bullish, hovering above the key support of $ 1.50. This support can be seen in the EURUSD daily and weekly charts. The $ 1.50 support is also in line with the 50% Fibonacci correction and the daily support trend line. However, the uptrend of the euro against the US dollar seems to be limited, especially since the daily resistance is seen at $ 1.2165.
In the EURUSD four-hour chart, the market is under selling pressure from the resistance of $ 1.2165. This resistance could be a good place to enter a sell trade and lower the euro to the $ 1.2067 support area.