Technical Analysis

EUR/USD Price Analysis – May 10, 2023

By LonghornFX Technical Analysis
May 10, 20232 min

Daily Price Outlook

The EUR/USD currency pair dropped below 1.1000, continuing its decline from monthly highs despite comments from European Central Bank (ECB) policymakers. The US dollar rose ahead of crucial data thanks to increasing US Treasury products.

ECB Governing Council member Martins Kazaks stated that more rate increases may not be completed in July, while Peter Kazimir warned that rates will need to be increased for a longer period of time than originally expected.

Isabel Schnabel noted that more needs to be done to get inflation back on track. The final reading of the German Consumer Price Index for April is open, while the US Consumer Price Index for April will provide crucial data.

The Federal Reserve's expectations for economic policy are likely to be impacted by the markets' trembling ahead of US consumer inflation.

 EUR/USD Price Chart - Source: Tradingview

EUR/USD – Technical OutlookThe EUR/USD currency pair is currently displaying a slight bullish bias, having bounced off the 1.0941 level and is currently trading around 1.0960. On the upside, the EUR/USD pair faces strong resistance near the 1.0990 level, a barrier strengthened by previously established highs and the 50-day exponential moving average (green line). These factors are likely to keep the EUR/USD upward movement limited.

Today, investor focus is expected to remain on the US CPI figures. Higher inflation figures typically trigger a selling trend in the EUR/USD currency pair. Conversely, if inflation figures are weaker or if the US economy falters, there's a possibility that the EUR/USD might breach the 1.0990 level and aim for the next resistance level at 1.1054.


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