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EURUSD on Friday dropped -0.62% to 1.08470. Week ending 2023-05-12 moved lower by -1.55%. What you need to know.

EURUSD on Friday dropped -0.62% to 1.08470. Week ending 2023-05-12 moved lower by -1.55%. What you need to know.

EURUSD Analysis

Performance
Period Pct Chg Momentum
Friday -0.62% -68.2 Pips
Week 2023-05-12 -1.55% -170.4 Pips
May -1.52% -167 Pips

Upcoming key events for the new week (London Time)

Tue 10:00 AM EUR GDP (seasonally adjusted) (3-mth)
Tue 01:30 PM USD Retail Trade Turnover (1-mth)
Wed 11:00 PM EUR Ascension Day
Thu 01:30 PM USD Initial Unemployment Insurance Claims

What happened over the week

🇺🇸 UoM 5-year Consumer Inflation Expectation in May preliminary estimate exceed forecast and rose to 3.2% compared to previous figure 3% in April Source: University of Michigan
🇺🇸 Michigan Index of Consumer Sentiment in May preliminary estimate below forecast and dropped to 57.7 points compared to previous figure 63.5 points in April Source: University of Michigan
🇺🇸 In the week ending 06 May, the Initial Unemployment Insurance Claims rose to 264K compared to previous figure 242K Source: Department of Labor
🇺🇸 CPI Inflation Rate (12-mth) in April below forecast and dropped to 4.9% compared to previous figure 5% in March Source: Bureau of Labor Statistics




EURUSD Daily Chart by TradingView

What can we expect from EURUSD for the new week and what happened on Friday?

EURUSD on Friday dropped -0.62% to 1.08470. Price is below 9-Day EMA while Stochastic is falling in oversold zone. For the week ending 2023-05-12, the pair dropped -1.55% or -170.4 pips lower.

Looking ahead on Monday, EURUSD looks bearish as the pair posted lower in Friday trading session.

For the new week, our technical outlook looks bearish, immediate support level is at 1.07780 (WS1) with break below could see further selling pressure towards 1.07089 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 1.10537 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 1.08468 would indicate selling pressure.

For the month of May, EURUSD is down by -1.52% or -167 pips lower.

Weekly key levels to watch out:

R3 1.11918
R2 1.11227
R1 1.09849
Weekly Pivot 1.09158
S1 1.07780
S2 1.07089
S3 1.05711

You might also be interested in:

In April 2023, the prices of frequently purchased goods sold in hyper and supermarkets rose by 15.1% year on year Source: INSEE
Construction of buildings indices, Civil engineering indices and miscellaneous indices for construction in March 2023 Source: INSEE
In April 2023, consumer prices increased by 0.6% over one month and by 5.9% year on year Source: INSEE
In April, the Consumer Price Index for All Urban Consumers increased 0.4 percent, seasonally adjusted, and rose 4.9 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.4 percent in April (SA); up 5.5 percent over the year (NSA). Source: Bureau of Labor Statistics Publications
Inflation rate in April 2023 at +7.2% Source: Statistisches Bundesamt (Destatis)
Isabel Schnabel: Challenges for monetary policy at times of high inflation Source: European Central Bank
Monthly Wholesale Trade: Sales and Inventories Source: Census Bureau
Philip R. Lane: Inflation and monetary policy Source: European Central Bank

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