EUR/USD: Steady inflation, but growth signals are fadingEuro/US DollarFX:EURUSDXBTFXPosted figures for the US economy are showing that the inflation is still under control, while the industrial production is slowing down and with it, the total economic output. The existing home sales in March dropped by -3,6% for the month, below market expectations of +2,0% m/m. The Producers Price Index in March was increased by 0,5% m/m, significantly below market consensus of 1,1% m/m. Core PPI was increased by 0,1% m/m and 3,8% y/y. Also these figures were below market expectations of 0,5% m/m and 4,1% y/y. Industrial Production in March dropped by -0,5% m/m, still holding positive 0,7% on a yearly basis. Anyway, the posted figures were significantly below market forecasts of 0,5% m/m and 1,8% y/y. Wholesale prices in Germany were increased by 2,7% in March on a monthly basis, significantly higher from forecasted 0,4% m/m. Industrial Production in the Euro Zone increased by 0,4% in February for the month, while still holding a negative figure of -0,6% on a yearly basis. Regardless of a lower increase, posted figures were still higher from market estimates of 0,5% m/m and -1,2% y/y. In line with the development of the conflict in the Strait of Hormuz and the dropping price of oil, the USD lost some of its previously gained strength. The week started with a strong move from 1,1660 and closed the week at 1,1764. The highest weekly level reached was 1,1847. The RSI reached its maximum value of 64, however, a clear overbought market side has not been reached. The major development in technical analysis is occurring with MA lines. Namely, both MA50 and MA200 are moving together, as one single line, indicating that the so-called dead cross is on the stage. Within the week it should be expected the cross to be confirmed on charts. Charts are a bit mixed at this moment. The weekly chart is showing some further potential toward the upside, where 1,1920 could be tested for one more time. However, the daily chart is showing potential for further short term strengthening of USD. In this sense, the level of 1,1850 should be watched for the potential move higher toward the 1,1920. If 1,1850 is breached, then the next level which will be tested is 1,1920. However, if the week starts with continuation of a correction, then levels between 1,1740 and 1,17 support should be watched. Important news to watch during the week ahead are: EUR: Producers Price Index in Germany for March, ZEW Economic Sentiment Index in April in Germany, S&P Global Manufacturing PMI flash for April for Germany and the Euro Zone, Ifo Business Climate in Germany in April, USD: Retail Sales in March, S&P Global Composite PMI flash for April, University of Michigan Consumer Sentiment final for April.