EUR/USD wobbled in the post-Brexit week, but basically did not go too far. More PMIs as well as the postponed ECB meeting minutes are eyed. Will EUR/USD choose a new direction? Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.
In the week after Britain’s decision to leave the EU, there were some doubts that this would really happen and this provided some support also to the euro. In general, things seem calmer, and the ECB is not in any rush to act, different from the BOE. This provides the main support for the common currency. Spanish politics remain messy after the elections, but there is hope for a stable government. Inflation in the euro-area edged up to 0.1%. Both events also support the euro. In the US, final GDP slightly beat expectations but the Fed is in no rush to raise rates.
Updates:
EUR/USD daily chart with support and resistance lines on it. Click to enlarge:
