EUR/USD Daily Analysis: May 29, 2019
There is a high probability for the EUR/USD pair to trade range-bound for this week but will less likely reach a new yearly low.
The reason behind is that there is a minor report expected on the economic calendar this week. The ECB will have its meeting next week and the recent data on employment figure is anticipated to be released as well. These two events will kickstart the momentum needed to maintain descent.
Data released didn’t have a big impact on the trading rates despite the less-than-expectations result on preliminary CPI. On the other hand, the quarterly GDP has increased. The consumer spending grew at a faster pace this April than expected.
The pair seems to have maintained the closing the candle at 1.11350 on the 4-hour chart, which sets a rally to the peak in the early part of the month.
The recent support is important and uncertain while the pair should not proceed lower in order for it to reach higher levels.
Meanwhile, on the hourly chart, there is an intersection with the support level of 1.1150 to the lower part of the channel.
Although the pair grew higher at the beginning of the North American session, the upper resistance at 1.1170 is less likely important. The pair has already offered twice as resistance since its breakthrough. There is also some confluence with the 200-MA close to it and the chance for a higher level is not too far.
Thus, there is a possibility for the price to bounce higher although, we can expect the trend for short-term to decline. Sellers can push for a rally around 1.1170. However, in the case of decline lower than the support level, it is better to be careful in lowering the price without enough momentum.
There is a high probability for the EUR/USD pair to trade range-bound for this week but will less likely reach a new yearly low.
The reason behind is that there is a minor report expected on the economic calendar this week. The ECB will have its meeting next week and the recent data on employment figure is anticipated to be released as well. These two events will kickstart the momentum needed to maintain descent.
Data released didn’t have a big impact on the trading rates despite the less-than-expectations result on preliminary CPI. On the other hand, the quarterly GDP has increased. The consumer spending grew at a faster pace this April than expected.
The pair seems to have maintained the closing the candle at 1.11350 on the 4-hour chart, which sets a rally to the peak in the early part of the month.
The recent support is important and uncertain while the pair should not proceed lower in order for it to reach higher levels.
Meanwhile, on the hourly chart, there is an intersection with the support level of 1.1150 to the lower part of the channel.
Although the pair grew higher at the beginning of the North American session, the upper resistance at 1.1170 is less likely important. The pair has already offered twice as resistance since its breakthrough. There is also some confluence with the 200-MA close to it and the chance for a higher level is not too far.
Thus, there is a possibility for the price to bounce higher although, we can expect the trend for short-term to decline. Sellers can push for a rally around 1.1170. However, in the case of decline lower than the support level, it is better to be careful in lowering the price without enough momentum.