EUR/USD Weekly Forex Forecast – 26th Feb to 2nd Mar 2018
Technical Outlook: The EUR/USD was seen posting declines last week with investors going back to favoring the USD. Price action was seen falling past the support level near 1.2361 – 1.2331. The break down last week below this level indicates further downside momentum in price. On Friday, the EUR/USD managed to briefly rise back to this level but the reversal here signaled that the resistance level was holding up. We expect EUR/USD to continue posting declines in the near term. The initial downside targets come in at 1.2211 followed by 1.2070. Alternately, if EUR/USD manages to close above 1.2361, we expect some more consolidation to take place above this level.
Fundamental Outlook: Economic data from the Eurozone picks up steam with the week ahead marked by both economic and political events. In a week’s time, the Italian parliamentary elections will be coming up. Although the risks are limited, there is still a chance that investors will remain cautious. On the economic front, preliminary inflation reports from Germany, France and the Eurozone will be coming out over the week. As the markets shift to a new trading month on Thursday, the manufacturing PMI’s for the Eurozone will come out towards the later part of the week. Inflation data could remain another key risk for the eurozone over the week.