FORECAST - EUR/USD - May 22 -26, 2017

Euro/Dollar reached the uppermost in six months, generally because of the weakness of the USD. The USD was declining as President Trump was surrounded by more scandals. The fears of delaying of growth friendly policies made the dollar fall. German PMIs, and the minutes of ECB meeting stand out in the past week. Let’s see the highlights of this week and a technical analysis for the EUR/USD pair.

German GDP (final) – Tuesday at 6:00 GMT. - According to the first release, the largest economy of Europe grew by 0.6% q/q.  That figure is likely to be confirmed.

German Ifo Business Climate – Tuesday at 8:00 GMT. This figure reached 112.9 in last month. Further rising up to 113.1 points are expected for May.

ECB Financial Stability Review – Tuesday at 8:00 GMT. The ECB publishes this report twice a year.

Flash PMIs – Tuesday - France at 7:00 GMT, Germany at 7:30 and 8:00 GMT for the euro-zone.

German GfK Consumer Climate – Wednesday at 6:00 GMT. This 2000 strong consumer survey, past the expectations in April, reaching 10.2 points. A repeat is expected now.

ECB Meeting Minutes – Thursday at 11:30 GMT.

Support and Resistance levels for EUR/USD (Technical Analysis)

Technical lines from top to bottom:

1.1420 - Strong Resistance

1.1360 - Strong Resistance

1.1300 - Strong Resistance

1.1170 - weak Support

1.1120 - weak Support

1.1000 - Strong Support

1.0950 - Strong Support

1.0870 - Strong Support

1.0820 - weak Support

1.0775 - Strong Support

EUR/USD pair has had three major and growing lows in this year. 1.0340, 1.0490 and 1.0565 in April. And on the topside, higher highs has appeared. Last week, the EUR/USD breach above the channel limits, and pointing upwards.

We remain bullish for EUR/USD.