EUR/USD is leaning lower as the US dollar continues moving to the upside. What’s next? It may be close to a breaking point.
Here is their view, courtesy of eFXdata:
Barclays Research discusses EUR/USD outlook and notes that data releases this week could add to the EUR’s downside risks at critical technical levels in EUR/USD.
“These data arrive as EURUSD registers a weekly close just above its year-to-date lows at 1.1509 and the ‘head-and-shoulders neckline’ support formed by its November 2017 and May 2018 closing lows, a break of which could end recent range trading to the downside,†Barclays argues.
Barclays expects German June IP to dip 0.6% m/m versus consensus expectations of -0.5% (previous: 2.6% m/m).
Aside from data, Barclays notes that Italian politics, ie, the newly approved labor market reform, carries meaningful near- and medium-term risks for Italy’s growth outlook.
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