FX.co ★ The euro showed weakness

EURUSD, H4 chart

The euro fell sharply on Tuesday. At the same time, the euro received some support from the bulls on Wednesday, January 4th. But the single currency still showed weakness and it is clearly visible on the chart.

Fundamental: inflation in Germany fell sharply to 8.6% per annum from 10% per annum last month.

This gives the European Central Bank the right to slow down with the rate hike. But this also plays against the strengthening of the euro.

This week there will be reports on the US economy - ISM industrial on Wednesday, and the Non Farm and ISM service on Friday.

The minutes of the Federal Reserve meeting on Wednesday.

The news will probably show that the Fed is thinking about some kind of pause in raising rates.

This may locally push the euro to the highs of December.

But I still believe that you should start selling the euro from the highs.