Technical Analysis

EUR/USD Analysis – May 28, 2021

By LonghornFX Technical Analysis
May 28, 20213 min
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European Inflation Figures in Highlights!**

The EUR/USD closed at $1.2192 after placing a high of $1.2216 and a low of $1.2175. EUR/USD pair failed to provide any meaningful direction on Thursday as the currency pair moved in a consolidation phase after a corrective decline on Wednesday. The currency pair EUR/USD fluctuated in a narrow range on Thursday amid the mixed data releases. The rising U.S. Treasury yields helped the greenback stay resilient against its rivals. The U.S. dollar index remained above 90 levels however closed its day with minor losses whereas, the U.S. treasury yields on the 10-year note rose above 1.60%.

According to the European Central Bank Governing Council member and President of Bundesbank, Jens Weidmann, it was crucial to keep fiscal support measures targeted and limited in time and put public finances back on a strong footing pandemic. Weidmann added that it must be clear to everyone that the monetary policy will not be put at the service of fiscal policy. He said that the current high level of government intervention in the economy was justifiable in a crisis, but it should not become routine. After these comments, Euro came under slight pressure and kept EUR/USD lower for the day.

At 11:00 GMT, the German GfK Consumer Climate declined to 07.0 against the expected -5.3 and weighed on the single currency Euro that added pressure on EUR/USD pair. From the U.S. side, at 17:30 GMT, the Prelim GDP for the quarter dropped to 6.4% against the estimated 6.5% and weighed on the U.S. dollar and added strength in EUR/USD pair. The Unemployment Claims from last week fell to 406K against the predicted 427K and supported the U.S. dollar that kept EUR/USD pair under pressure. The Core Durable Goods Orders rose to 1.0% against the expected 0.8% and supported the U.S. dollar.

The Durable Goods Orders dropped to -1.3% against the anticipated 0.8% and weighed on the U.S. dollar that capped further EUR/USD pair losses. The Prelim GDP Price Index for the quarter increased to 4.3% against the predicted 4.1% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales in April reduced to -4.4% against the estimated 0.6% and weighed on the U.S. dollar that pushed EUR/USD pair higher. On Friday, the European Commission will publish the Consumer Confidence, Business Climate, and Economic Sentiment Indicator for May. The Personal Consumption Expenditure Price Index, Personal Spending, Personal Income, and University of Michigan’s Consumer Sentiment Index data will be released.

EURUSD Intraday Technical Levels

Support Resistance

1.2161 1.2242

1.2130 1.2294

1.2079 1.2324

Pivot Point: 1.2212

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.2178 area, having crossed below the 20 & 50 periods EMA extending strong resistance at 1.2209 level for now. On the lower side, an upward trendline is supporting the pair around the 1.2175 level. A bearish breakout of 1.2175 level extends the selling trend until 1.2126 and 1.2064 support levels. The MACD is exhibiting a bearish crossover below 0, and the RSI also holds below 50, suggesting a solid selling trend in the EUR/USD. The EUR/USD’s resistance holds around 1.2209 and 1.2260 levels. Later today, the eyes will remain on the European Inflation figures. All the best!**

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