The Euro made a steady yet decisive move across an important barrier, amid hopes. The upcoming week is quite busy. Here’s an outlook for the European events, and an updated technical analysis for EUR/USD, now in higher ground.
On Friday, EUR/USD even approached the next resistance line, after clearing the all important 1.3440. Is this rise justified?
EUR/USD daily chart with support and resistance lines marked. Click to enlarge:
EUR USD Chart January 24-28
EUR USD Chart January 24-28 - Click to enlarge
1. Flash PMI: Monday morning – begins at 8:00 in France, continues at 8:30 in Germany and ends with the all-European figures at 9:00. This busy schedule always provides high volatility. All the figures are above 50 points, meaning economic growth, and they are all expected to remain above this level, although there are a few differences to note – French manufacturing is expected to slow to 56.8 points, while services to rise to 55.2. In Germany, another improvement is predicted in the already strong manufacturing – from 60.7 to 51.1. For the whole continent small changes are expected, and they are likely to leave the manufacturing sector at a stronger growth (57.2) than services (54.2).
2. Industrial New Orders: Monday, 10:00. The total volume of orders stabilized last month with a rise of 1.4%. The previous months saw sharper moves. A stronger rise of 2.3% moves is likely now.
3. German Gfk Consumer Climate: Tuesday, 7:00. Germany’s consumers are gradually becoming more confident – the index is on the rise, but there are bumps. The survey of 2000 consumers is due to rise from 5.4 to 5.5 points.
