The currency pair developed its correction last week towards 1,1285. It was supported by the trade conflict between the US and China, which ensued again.
US CPI data, issued on Friday was worse than expected as inflation growth reached 0,3% only for the reported period. PPI index has shown 0,2% growth, which has meet economists’ expectations.
There was no important data from Eurozone last week. The uncertainty is still prevailing the markets and is supported currently by the trade conflict between the US and China. EUR/USD is likely to develop its upside movement towards the closest resistance at 1,1285. We think that this is the main scenario for this week.
Once the target is reached, we advise to monitor the situation for the signals. There are no supportive factors for further growth currently. EUR/USD is likely to reverse from the above mentioned resistance area.
