EUR/USD: outlook for August 15-21
EUR/USD held above 1.1100 (50-week MA). At the same time, the pair is still below 2016 resistance line in the 1.1260 area. Another obstacle is the declining 100-week MA at 1.1326. Daily moving averages remain horizontal hinting at the lack of big trend moves.
Euro area’s GDP growth was confirmed at 0.3%, while industrial production remained weak raising concerns about Q3 industrial performance. All in all, despite the fact that we may see EUR/USD test the mentioned resistance line, the single currency itself doesn’t have any reasons for sustainable growth versus the US dollar. The current advance pf the pair is provoked by America’s weakness. It means that we prefer selling its on attempts to get higher.
As for the European economic calendar, Monday will be a bank holiday in France and Italy, while on Tuesday Germany will release ZEW economic sentiment index. On Thursday we’ll find out the region’s current account and final consumer price index figure. The ECB will also release monetary policy meeting account.