EUR/USD Forecast Jan. 21-25 – Weak Growth Sours Investors On Euro

EUR/USD moved lower on weak German data and concern over growth prospects for the eurozone. Investors will be keeping an eye on German ZEW Economic Sentiment and manufacturing and services PMIs. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.

Germany data is viewed as a bellwether for eurozone, so weakness in Germany is raising concerns. Industrial Production posted its sharpest decline in more than four years, and the German Wholesale Price Index was also sharply lower.

Growth forecasts for the eurozone have been lowered, as the global trade war has taken a bite out of the export and manufacturing sectors. Nervous investors showed a preference for the safety of the greenback, at the expense of the U.S. dollar. The German economy is expected to show gains in Q4, but weak economic conditions in the eurozone has some analysts saying the bloc could be hit with a mild recession if the U.S economy slows down.

EUR/USD daily chart with support and resistance lines on it. Click to enlarge:

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