EUR/USD Daily Forecast – 29 February

Euro was pushed lower in the course of the session on Friday, going well below 1.10 handle after better than forecasted US GDP and Consumer Confidence figures, with euro going all the way to 1.09 handle where it found some amount of support. As for Monday, pair is likely to find some amount of support around 1.09 and 1.0850 level in extension, as it was the case yesterday, while area around 1.1050 level which was previously supportive should offer some amount of resistance, at least initially, and then 1.1080 level in extension.

EUR/USD Daily Forecast – 29 February

Friday's session brought Spanish and German data. According to the flash estimate published by the INE, the annual inflation of the CPI in February 2016 is -0.8%. Analysts were expecting 0.5% decrease. This indicator provides a preview of the CPI that, if confirmed, would imply a decrease of five tenths in its annual rate, given that in January this change was -0.3%.This decrease is mainly explained by the decrease in the prices of fuels (gas and diesel oil) and food and non-alcoholic beverages.

EUR/USD Weekly Forecast – 29 February – 04 March

Euro was pushed lower in the course of the last week. Area around 1.10 handle initially hold as a major supportive point, but by the end of the week, with better than forecasted US GDP figures pair pulled back all the way to 1.09 handle, which is of course a bearish sign. As for next week, we would be focused on US NFP figures.  We believe that some amount of support can be expected around 1.08 handle, which proved to be supportive in the past, while we would consider selling the pair at the sign of weakness near 1.10 handle as this should now be major resistive area.

EUR/USD Weekly Forecast – 29 February – 04 March

Events that marked the week:

From Eurozone, on Monday, German and French PMI figures were released. German private sector activity grew at the slowest pace in seven months in February, dampening optimism over the health of the euro zone’s largest economy, preliminary data showed on Monday. The preliminary German manufacturing purchasing managers’ index tumbled to a seasonally adjusted 50.2 this month from a final reading of 52.3 in January, the lowest in 15 months and missing estimates for 52.0. Meanwhile, the preliminary services purchasing managers’ index inched up to a seasonally adjusted 55.1 in February from 55.0 in the prior month. Analysts had expected the index to dip to 54.7.