The currency pair reversed downwards last week and continues to fluctuate within the midterm range. EUR/USD failed to reach 1,1285 and reversed. The main fundamental catalyst for this downtrend was trade conflict between the US and China.
German ZEW economic sentiment was negative as the indicator reached -2,1. Previous reading was 3,1. Economists expected the indicator to reach 5,1. Eurozone’s GDP had 0,4% growth which was equal to the previous reading and economists expectations.
US Retail Sales declined to -0,2%. Previous reading was 1,7%. Economists expected 0,2% growth. UoM Consumer sentiment increased to 102.
As you can see, it is hard to forecast future fluctuations currently as there are several factors of uncertainty currently. We expect EUR/USD to develop its decline towards the local low at 1,1112. After this, the currency pair may both develop its decline or reverse.
