FX.co ★ EUR/USD: possibility of bullish continuation

EUR/USD

We do not expect any important macro releases this week.

On Monday, volatility will likely be low as it is a federal holiday in the US.

According to the chart, EUR/USD consolidated after a surge last week. Technically, a bullish continuation is likely.

An inflation report was delivered in the eurozone. Consumer prices dropped to 6.1% from 8.1% on a yearly basis. Nevertheless, a 6% inflation rate still exceeds the ECB's target level of 2.0-2.5%. Therefore, the ECB may again raise interest rates at a meeting next month.

We see EUR/USD head toward 1.1100.