Forex News: EUR/USD - Fundamentals & Technicals

The EUR/USD declined by 0.01% at 6:43 GMT on May 15 and traded at 1.3713 and at 6:31 GMT, the pair hit a daily low at 1.3707.

Fundamental view:

The preliminary annualized GDP of the Euro zone probably advanced by 0.4% during the first quarter. This was followed by a 0.2% gain in the previous quarter. In the event of a better-than-expected rise in the region’s economy, the euro will receive support.
The final annualized reading of the harmonized index of consumer prices (HICP) in the Euro zone, perhaps increased by 0.7 % in April.

At 09:00 GMT, the Eurostat is expected to release the official report. Any weaker-than-expected reading may make the ECB to ease monetary policy at their next meeting in June. The ECB may ease the policy to avoid risks of deflation. On the other side,if the data comes out better-than-expected, it will probably dismiss the pressure on central bank’s officials and prevent them from taking imminent actions.

According to the median analyst’ estimate, The cost of living in the US probably increased 2.0% in April compared to the same month a year ago. According to the median forecast by experts, the core CPI moved up by 1.7% in April compared to the previous year,.

The US Bureau of Labor Statistics is expected to release its report at 12:30 GMT in Washington. Any better-than-expected result will certainly influence greenback’s demand. Moreover, the initial jobless claims in the US moved up to 320 000 in the week ended May 10th, compared to that of 319 000 the previous week. In case the initial jobless claims declines more than expected in the data that is expected to be released at 12:30 GMT, it will bring the positive sentiment for the greenback.

Technical view

In the event that EUR/USD figures out to breach the first resistance level at 1.3733, it will most likely proceed up to test 1.3749. On the off chance that the second key resistance is broken, the pair will likely endeavor to move to 1.3766.

In the event that EUR/USD figures out to breach the first key support at 1.3700, it will most likely keep on sliding and test 1.3683. With this second key support broken, the development to the downside will presumably proceed to 1.3667.