EUR/USD took another step forward, but could not hold onto the highs. What’s next? The big event on the agenda is undoubtedly the ECB meeting.  Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.

The ECB continues sending mixed messages about its next moves. It seems that they will announce QE tapering in September, but would like to curb the market’s enthusiasm in order to keep the euro and bond yields low. Most data points look good, with industrial output rising 1.3%. In the US, the latest political scandal involving the son of the president hurt the dollar, as well as Yellen’s bit of concern about inflation.

Updates:

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