EUR/USD backed down from the post-Draghi highs only to shoot even higher on the Fed’s dovishness. The highlights for the upcoming week are the dual German business surveys as well as PMIs. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.

The Fed went to the extreme dovish edge, hitting the dollar hard. They painted a gloomier picture than many had expected and EUR/USD got close to the highs of the year. It did not begin that way: the pair edged down as markets began understanding the ECB delivered quite a lot. The recent moves are probably frustrating for the central bank, which would prefer a weaker euro, despite marginally better inflation figures in the euro-zone: core CPI was revised up to 0.8%.

Updates:

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