The Flash Estimation of EU CPI and the ECB meeting is likely to provide enough volatility for the EU pair during the next week. Moreover, US Job numbers, with their “Too Optimistic” forecasts, can become a great source of volatility. Should the inflation numbers increase together with ECB’s announcement of waiting for the more incoming data, can fuel enough strength into the EUR pair. On the other hand, as the forecast for US labor market numbers are too high, should the actual release fell below forecast and even from prior level, considerable weakness can be seen in the greenback.
To sum up, it becomes advisable to go long for EURUSD pair, however proper risk management tools should be used to avoid the crash in account numbers.
P.S. Today’s GDP reading from US becomes important to turn the pair towards 1.3680 levels should it failed to meet the previous reading.