The Eurozone economy may slow down this year.

The Euro has stabilized at around 0.92 Euros per US Dollar, benefiting from the weakening of the Dollar. Investors continue to assess the monetary policy trends of both the Fed and the ECB, with expectations of a rate cut in the near future. It is pointed towards the first rate cut in June. Additionally, there are expectations that the ECB will cut rates by 100 basis points within 2024, citing progress in controlling inflation despite downward pressure on prices and strong wage growth.

The inflation rate in the Eurozone decreased to 2.6% year-on-year in February, down from 2.8% in the previous month, marking the lowest inflation rate in three months. This was due to a decrease in energy prices by 3.7%, while food prices increased at a slower rate of 4.0%. Core inflation, which excludes volatile food and energy prices, also decreased to 3.1%.

The Eurozone unemployment rate decreased to 6.4% in January, in line with market expectations, with the number of unemployed decreasing by 34,000 from the previous month to 11.009 million people. However, youth unemployment rate, for those under 25, remained high at 14.5%, with Spain having the highest unemployment rate at 11.6%, followed by France at 7.5%.

The Eurozone industrial producer price index decreased by 8.6% year-on-year in January, due to a 21.3% decrease in energy prices, slowing down from a 27.3% decrease in the previous month. Intermediate goods costs decreased by 5.8%, following a 4.8% decrease previously. Meanwhile, capital goods (-2.1% vs. 2.8%), durable consumer goods (-1.1% vs. 2.9%), and non-durable consumer goods (-2.0% vs. 3.3%) prices all decreased if excluding energy. Producer prices accelerated by 1.5% if excluding energy, up from a 0.5% decrease in the previous month. Each month, producer prices decreased by 0.9%, exceeding market expectations of a 0.1% decrease.

The European Central Bank (ECB) kept interest rates unchanged at its recent meeting, as policymakers sought to avoid an impending economic downturn and attempted to keep inflation pressures from rising. The ECB forecasts average inflation rates of 2.3% in 2024, 2.0% in 2025, and 1.9% in 2026. Additionally, the ECB revised down its growth forecast for 2024 to 0.6%, expecting economic activity to slow down in the near future.

Techical analysis data (5H)

Resistance: 0.9145, 0.9149, 0.9156

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 0.9125 - 0.9133 but cannot break the support at 0.9133, you may set a TP at approximately 0.9149 and SL at around 0.9121 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 0.9145 - 0.9149, you may set a TP at approximately 0.9156 and SL at around 0.9125 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 0.9145 - 0.9149 but cannot break the resistance at 0.9145, you may set a TP at approximately 0.9125 and SL at around 0.9156 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 0.9125 - 0.9133, you may set a TP at approximately 0.9121 and SL at around 0.9149 or according to your acceptable risk.

Pivot point March 14, 2024 01:36 PM. GMT+7