EUR/USD made a move to the upside but eventually failed to stay there and retreated amid the ECB meeting. What’s next? Final inflation figures and a key German survey stand out. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.

The ECB raised its growth forecasts but the optimism was confined to GDP and not inflation. The euro initially rallied but then retreated, as the door to more bond-buying is still wide open. Forward-looking PMIs support the notion that the euro-zone economies will continue outperforming, but the ECB seems to be waiting to see the white in inflation’s eyes. In the US, the Fed raised rates as expected but two members voted against a hike as inflation remains stuck. This hurt the dollar temporarily as the advances on tax reform and upbeat retail sales data helped the greenback.

Updates:

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

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