Last trading week showed us a strong American currency. At first, the US Dollar started losing value against the common currency at the beginning of the trading week.
The Euro managed to show some strength due to stable economic data from Germany, the Eurozone's biggest economy and Mario Draghi's speech. Even the positive tone of Janet Yellen's speech failed to hinder the common currency.
By the middle of the trading week, EURUSD had already touched 1,3650. This turned out to be the weekly high. The price started declining from the high. Thursday was the turning point, with the US Dollar regaining almost all of its lost positions. The price dropped down to 1.3588 and getting back to the levels seen at the very beginning of the trading week.
On Friday, the common currency managed to initiate a bullish reaction, thereby recovering up to the intraday high of 1.3624 amid stable inflation levels of Germany and Spain . After that the common currency retraced back to 1,3590.
So, the ambiguous trading week ended close to 1.3609, Market Leader reports. Let's see what awaits us next trading week.
Next week's key fundamental reports fro the Eurozone.
1. The economic stats for the Eurozone start on Monday, July 14th, 2014.
The first report will show us how strong the Eurozone's industrial sector is. Last moth, the figures showed a 0,8% expansion after a decline 0,3% drop.
The highest readings this year were seen in January 2014, when the index gained 1,8%. Economists are pessimistic about the forthcoming report. They say this time, the Eurozone's industrial sector is going to shrink by 1,2%, which is this year's low.
Monday's key event is going to be Mario Draghi's speech. The President of the ECB is expected to make a speech in Strasbourg later on that day. Most likely, the central banker is going to highlight the current weakness of inflation despite the ECB's recent steps.
Next day, Germany's ZEW indices are expected to open the range of economic reports for the day. It should be noted that investor sentiment has been going down since early 2014. January was the month of the highest optimism this year, thereby showing 61,7 points. After that, the index started going down month by month to hit the 18-month low at 29,8 in June. Economists expect the index to keep going down to touch 28,0 this time.
Thursday's key event is the Eurozone inflation index. The consumer price index has been relatively stable over the recent months, staying close to 0,5%. Still, this is far below the 2% inflation target set by the ECB. Economists expect further stability below the target.
EURUSD: Mid-Term Prospects
According to Masterforex-V Academy, the mid-term picture in the H4 chart of EURUSD looks as follows:
The current mid-term bias is bearish, which means that the bears are currently dominating the market. The mid-term tendency aahs been going on from 1.3993. Ther is a completed bearish wave - 1.3993-1.3512. It is followed by a completed bullish reaction - 1.3512-1.3699, which is equal to 38.2 % Fibo. Further on, the price started developing another move within the scope of the bearish count - 1.3699-1.3575, followed by a another reaction - 1.3575-1.3650.
At this point, the price is consolidating within the scope o the 1.3699-1.3575 price range.
A break and consolidation outside of the range will determine the direction of the forthcoming tendency.
Resistance: 1.3650 + 1.3663 + 1.3699.
Support: 1.3575 + 1.3535 + 1.3502(12).
