EUR/USD: Last week's indecisive market makes this week's close pivotal
- The EUR/USD market ended no an indecisive note last week, hence, this week's close will likely set the tone for the next big move in the EUR/USD.
- German/Eurozone may have seen the last of the negative news.
- Eurozone May PPI & retail sales are data risk today, ECB's Praet also a risk.
The EUR/USD pair created a doji candle last week, signaling indecision in the marketplace and this week's close will likely set the tone for the next move in the common currency.
A bullish reversal would be confirmed if the EUR/USD pair closes above 1.1852 (previous week's high) on Friday. On the other hand, a weekly close below 1.1508 (previous week's doji candle low) would signal a continuation of the sell-off from the February high of 1.2556.
Europe-Germany may have seen last of any negative news for now
Germany's Christian Social Union (CSU) party reached a deal with Chancellor Merkel’s Christian Democrats (CDU) over illegal immigration, and the resignation threat has been withdrawn, according to Reuters. The fading political uncertainty could assuage downside pressure around the common currency.
Further, an above-forecast Eurozone producer price index (PPI) reading and retail sales number could put a bid under the common currency. The EUR traders will also watch out for comments from ECB's Praet.
EUR/USD Technical Levels
Resistance: 1.1690 (weekly high), 1.1852 (previous week's doji candle high), 1.1956 (10-week moving average).
Support: 1.1508 (downward sloping 50-week moving average), 1.1448 (50% Fib R of 1.0341-1.2556), 1.14 (psychological support).
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
