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EUR/USD Price Continues to Struggle Ahead of German Inflation Data

EUR/USD Price Continues to Struggle Ahead of German Inflation Data

Nick Cawley, Senior Strategist

EUR/USD Price Forecast, Analysis and Chart:

  • Euro-Zone confidence turns a touch higher.
  • German inflation out later points lower.

Brand New Q4 2019 USD and EUR Forecast and Top Trading Opportunities

Euro-Zone Confidence Data and Analysis

Economic sentiment improved in the both the euro area and the euro-zone in November with a slight increase in confidence among consumers and retail trade managers, while confidence remained broadly unchanged in industry and services. While the pick-up will be appreciated by those in Brussels, the indicator remains stuck near multi-year lows.

The IG Client Sentiment shows that traders are 57% net-long EUR/USD, giving us a bearish contrarian bias.

The upcoming German inflation data is expected to show price pressures easing in November, on a month-on-month basis, and any miss of already low expectations may see the euro slip further. German CPI m/m (Nov) is expected to fall to -0.6% from a prior month’s 0.1%.

EUR/USD is back above 1.1000, just, after printing a 1.09924 low yesterday. While the 1.1000 ‘big figure’ may act as temporary support, the daily chart continues to suggest prices will be going lower for longer. Support levels at 1.0989, ahead of 1.0926 and 1.0879 with a cluster of recent lows/highs and the 20- and 50-dma blocking the way to the upside, with the recent November 21 high print at 1.1097 unlikely to be challenged in the short-term.

EUR/USD Daily Price Chart (April - November 28, 2019)

IG Client Sentiment shows that traders are 57% net-long EUR/USD, a bearish contrarian bias.

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on the Euro and the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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