EUR/USD: forecast for February 15-21
EUR/USD rose to 3-month high. The main bullish driver of the single currency was the covering of trades funded in the euro. Data released in the euro area have been relatively weak. The region’s economy rose by 0.3% in the last quarter of 2015, while industrial production fell by 1% in December.
The possibility that the ECB will significantly ease policy in March is high, though it is not clear yet whether these measures will work. The ECB President Mario Draghi will speak on Monday. Given the recent appreciation of the single currency, Draghi will probably do his best to talk the euro down.
As for other events in European economic calendar, watch the release of German and the euro zone’s economic sentiment index on Tuesday. In addition, German Constitutional Court will debate ECB’s OMT ruling.
Technically EUR/USD ran into some resistance on approach to 1.1375. Support is at 1.1150 and 1.1050. As for resistance, above 1.1370 it lies at 1.1450 and 1.1500.