As it was clearly shown in technical analysis, USD gained against EUR during the previous week. However, the saga over US debt ceiling continues, which might hurt USD in the coming period. Currently set deadline for a deal accomplishment is June 1st. After this date, Treasury Secretary Yellen noted quite a negative scenario which might happen, in case of a US default. Markets don’t like to hear such scenarios from Government officials, which is why majority of investors is currently on hold. There is still less then two weeks until June, which might be enough time to settle a proper deal. It might be expected that USD will benefit from such an outcome in the coming period.
The EURUSD pair started the previous week at level of 1.09 and moved in a bearish way during the rest of the week. Support line at 1.08 has been clearly tested during the last two days of the week, but it has not been breached. Minimum level reached during the week was 1.076, however, EURUSD is finishing the week around 1.08 level. RSI is still moving close to oversold territory, but it has not been clearly reached during the previous week, leaving some space for the level of 30 for the coming period. Moving average of 50 days is still diverging from the MA200 counterpart, but the divergence is slowing down.
The currency pair will start the week ahead by testing the support line at 1.08. At this moment, and considering relatively lower daily trading volumes, it should not be expected that this line would be clearly breached. Charts are pointing on a possibility for one short reversal to the upside, at least to the level of 1.09, before EURUSD reverts back to 1.08 support.
Important news to watch during the week ahead are:
The EURUSD pair started the previous week at level of 1.09 and moved in a bearish way during the rest of the week. Support line at 1.08 has been clearly tested during the last two days of the week, but it has not been breached. Minimum level reached during the week was 1.076, however, EURUSD is finishing the week around 1.08 level. RSI is still moving close to oversold territory, but it has not been clearly reached during the previous week, leaving some space for the level of 30 for the coming period. Moving average of 50 days is still diverging from the MA200 counterpart, but the divergence is slowing down.
The currency pair will start the week ahead by testing the support line at 1.08. At this moment, and considering relatively lower daily trading volumes, it should not be expected that this line would be clearly breached. Charts are pointing on a possibility for one short reversal to the upside, at least to the level of 1.09, before EURUSD reverts back to 1.08 support.
Important news to watch during the week ahead are:
- Euro: German IFO business Climate for May, German GDP Growth rate and GfK Consumer Confidence
- USD: FOMC Minutes, GDP Growth Rate, PCE Index, Durable Goods orders, Michigan consumer Sentiment for May
Certainly, any news on potential resolution of the debt-ceiling should be closely watched, as it might bring some market volatility.
