EUR/USD: what to expect on the new week?
EUR/USD attempted to recover on the past week, bringing many analysts to the idea of a “double bottom” formation at 1.2350. However, the price failed to fix above the 1.2500 mark and holds below the key trend resistance line. We maintain a bearish view, targeting 1.2360 and lower.
Euro remains pressured by the expectations of the full-scale ECB quantitative easing. Low energy prices increase disinflationary expectations. Next meeting is scheduled for the coming Thursday, December 4.
However, there is a high chance that the ECB officials will wait until the second round of the TLTRO program to come on December 11. Low demand for the cheap ECB loans would be a strong argument for launching aggressive stimulus in early 2015.
On the new week you should also pay attention to the November PMI indices on Monday and on Wednesday. What’s more, October retail sales data will also be released on Wednesday.