EURUSD Consolidates Ahead of Euro Zone Data; Can It Rall to Its 2-Month Highs?

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Written By: Angeline Feliciano

May 29, 2020, 06:17 BST 06:17

EURUSD

Summary:

EURUSD is consolidating within a 25-pip range in today's Asian session as markets await the upcoming data from the euro zone.

EURUSD is trading in a tight, 25-pip consolidation ahead of today’s roster of economic reports. As of this writing, the currency pair is trading around 1.1084, after opening today’s trading at 1.1076.

At 7:00 am GMT, the German retail sales report for April is expected to print at -12%. Then at 7:45 am GMT, French preliminary GDP for Q1 2020 is eyed at -5.8%. Along with this, the country’s consumer spending is anticipated at -14.5%. Then at 10:00 am GMT, euro zone CPI for May is forecasted at 0.1% while its core reading is seen at 0.8%.

Better-than-expected euro zone data could push EURUSD higher. Alternatively, negative reports could push the currency pair lower.

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EURUSD Outlook

On the 1-hour time frame, it can be seen that EURUSD has been consolidating for the past few trading hours. Because this follows a strong rally, a bullish flag chart pattern has formed. This is widely considered as a bullish continuation indicator. With this, a strong bullish close above the high of May 28 at 1.1092 could mean that EURUSD could still rally to its 2-month highs at 1.1144 where it topped on March 27.

On the other hand, if there is not enough bullish momentum, the currency pair could trade lower. Near-term support is at 1.1029 where the 61.8% Fib level (drawing the Fibonacci retracement tool from the low of May 28 to its intraday swing high) coincides with previous highs.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.