EURUSD Analysis: European economic recovery slowed down

September 7, 2020

By IFCMarkets.com

European economic recovery slowed down

Retail sales in the Eurozone fell by 1.3% monthly in July. This is much worse than both forecast of + 1.5%, and their June result of + 5.3%. Retail sales in Germany fell 0.9% month-on-month in July, while a 0.5% rise was expected. In the United States, retail sales grew by 1.2% in July. Industrial orders in Germany increased by 2.8% in July. This is worse than the forecast ( 5%) and the June figure ( 28.8%). Compared to the mid-March rate, EURUSD is now traded 11% higher. Last week, the ECB chief economist Philip Lane expressed concern about the over-strengthening of the European single currency. In theory, given the current low inflation, the ECB may go for additional monetary easing, since they believe that too strong euro reduces the efficiency of European exports. Recall that in August, the Eurozone’s consumer prices growth slowed to 0.4% in annual terms from 1.2% in July.

Indicator VALUE Signal
RSI Sell
MACD Sell
MA(200) Neutral
Fractals Neutral
Parabolic SAR Sell
Bollinger Bands Neutral

 

Summary of technical analysis

Order Sell
Buy stop Below 1,173
Stop loss Above 1,203

Market Analysis provided by IFCMarkets.com

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