EUR/USD Outlook (21 May 2020)

Overall, EUR/USD is ranging across. Recently, EUR/USD trended higher into the resistance level of 1.09700.

The eurozone Final CPI y/y data released yesterday indicated a slight decline in the eurozone annual inflation.

• Final CPI y/y (Actual: 0.3%, Forecast: 0.4%, Previous: 0.4%)
  
• Final Core CPI y/y (Actual: 0.9%, Forecast: 0.9%, Previous: 0.9%)
  

French and German banks will be closed today in observance of Ascension Day.
Expect lower trading volatility and volume during the European market session.

Flash PMI data for France, Germany and the eurozone will be released later at 1515 (SGT), 1530 (SGT) and 1600 (SGT) respectively.

• French Flash Services PMI (Forecast: 27.9, Previous: 10.2 revised from 10.4)
  
• French Flash Manufacturing PMI (Forecast: 36.0, Previous: 31.5)
  
• Germany Flash Services PMI (Forecast: 26.3, Previous: 16.2 revised from 15.9)
  
• Germany Flash Manufacturing PMI (Forecast: 39.3, Previous: 34.5 revised from 34.3)
  
• Eurozone Flash Services PMI (Forecast: 25.0, Previous: 12.0 revised from 11.7)
  
• Eurozone Flash Manufacturing PMI (Forecast: 38.0, Previous: 33.4 revised from 33.6)
  

Business activities are expected to pick up in France, Germany and the eurozone.

Currently, EUR/USD is testing the resistance level of 1.09700 and the next support level is at 1.07800.
If the PMI data releases are better than the forecasted figures, look for buying opportunities of EUR/USD if it breaks the resistance level of 1.09700.