EURUSD declined for the third week in a row as the U.S. Dollar maintained its bullish momentum. EUR/USD finished the week at 1.1222, losing 131 pips or 1.15%. It had a 169 pip weekly range, with a low of 1.1179 and a weekly high of 1.1348.  The pair was mostly driven by speculation on future monetary policies. U.S fundamentals released mixed figures with better than expected Inflation the CPI, worse than expected Philly Fed Index.

EURUSD

On Monday, the investors are recommended to monitor the following events:

  • French Flash Manufacturing PMI (EUR)
  • French Flash Services PMI (EUR)
  • German Flash Manufacturing PMI (EUR)
  • German Flash Services PMI (EUR)
  • Flash Services PMI (EUR)
  • FOMC Member Bullard Speaks (USD)

Technical Overview:

EUR/USD traded in a descending channel all the week without breaking any of the trend lines. The pair concluded the week closer to the upper edge of the channel, as it found support at 1.1175 on Thursday. On Monday, EUR/USD is likely to find support at 1.1185 and a resistance at 1.1265. Furthermore, the breakage of support level is probable to add further selling until 1.1150 on Monday.

Previous Analysis Reference: The pair is likely to find support at 1.1220 initially and 1.1175 onward.  (19th May, 2016)

Daily Trading Range:

1.1465 – 1.1175

Daily Support & Resistance Levels

R3: 1.1253

R2: 1.1234

R1: 1.1222

Pivot Point: 1.1222

S1: 1.1184

S2: 1.1172

S3: 1.1153

Trading Recommendation:

  • Sell at 1.1260
    • Take Profit:
      • 1st @ 1.1200
    • Stop Loss 1.1295