EUR/USD Forecast: Eurozone Data Divergence Clouds Outlook
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Fresh eurozone PMI releases are underwhelming relative to consensus, reinforcing a cautious EUR/USD forecast heading into the next ECB meeting. Manufacturing weakness across Germany and France continues to weigh on sentiment, while services remain only marginally positive.
Technically, EUR/USD is consolidating just beneath a multi-week resistance band, with momentum indicators flattening as traders await clearer catalysts. A confirmed break lower would open the door toward the pair's recent swing-low support.
Positioning data from the latest COT report shows speculative longs trimming exposure, suggesting the market is bracing for a potential downside surprise in upcoming eurozone inflation figures.