EURUSD fell dramatically on Friday as he weakened on worse than expected economic figures. Eurozone fundamentals remained diverse this week with profound weakness in the manufacturing sector, but comparative strength in services. The German GDP came in at 0.7% almost equaling the U.S. quarterly reading of 0.8%.
On Monday, the investors are recommended to monitor the following events:
German Prelim Spanish Flash CPI y/y (EUR)
Spanish Flash CPI y/y (EUR)
FOMC Member Bullard Speaks (USD)
Technical Overview:
EURUSD trades in a declining channel even though it reached close to break out to upside. On Monday, the EURUSD support prevails at 1.1050 and at 1.10 with resistance at 1.1225, 1.1280 as well as between 1.1365 and 1.1375. The oscillator indicator RSI is in oversold territory.
Previous Analysis Reference: EUR/USD is likely to target the 61.8% Fibonacci extension level at 1.1189 whereas a support for the pair prevails at 1.1130 initially and 1.1070 onward (26th May, 2016)
1.1190 – 1.1045
Daily Support & Resistance Levels
R3: 1.1232
R2: 1.1198
R1: 1.1167
Pivot Point: 1.1142
S1: 1.1108
S2: 1.1086
S3: 1.1052
– Sell at 1.1150
o Take Profit:
§ 1st @ 1. 1075
o Stop Loss 1.1175
