EUR/USD fell to new 17-month lows but recovered quite quickly. What’s next? The ECB Meeting Minutes and PMI’s stand out. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.
Italy did not budge on the European Commission’s rejection of its budget. The showdown continues in the upcoming week. In addition, the German economy contracted in Q3, a worrying sign, even if this was expected. On the other hand, a Brexit draft deal is finally here and this supports the risk environment. The ongoing talks between the US and China also help. Late in the week, the US Dollar lost ground on dovish comments from several Fed officials.
EUR/USD daily chart with support and resistance lines on it. Click to enlarge:
