The Euro next week will fall
This morning, before the European trading session the pair EURUSD is currently trading at 1,2302. There is a slight increase of the Euro against the dollar (about 27 pips) in the last 24 hours. I believe that the main reason for the Euro to rebound in recent days is the availability of stable support for the Euro in the range 1,2190-1,2290.
Important market events on February 23:
• At 13:00 (GMT+3) Eurostat will publish the second estimate of Eurozone inflation for January. It is expected that the second evaluation will be released at the first assessment: in the calculation the annual inflation will be 1.3%, while core inflation was 1.0%. I believe that the effect of the publication of the statistics on the Euro will be negligible.
• At 16:30 (GMT+3) Statistics Canada will release the consumer price index in Canada in January. Expected decline in inflation from 1.9% in December to 1.4% in January. Assume that at the time of publication of the indicator of volatility in the canadian dollar will increase significantly.
• In the evening at approximately 19:00 (GMT+3) of the Federal reserve system of the USA will publish semi-annual monetary policy report. Sometimes the publication of this report provoked a very sharp movement in the us dollar. I think that if a trader open a trade then he should consider this event.
According to my estimates, next week EUR/USD will try to fall approximately to the level of 1,2190.