This Weeks (20-24 May) EUR/USD Forecast

The EUR/USD pair still shows significant drops, for the second week in a
row and the dollar keeps advancing. So the question for this pair is: Is it
going to suffer significant falls or is it ready to recover?
The 17
th
country currency bloc was dragged to its longest ever recession
by the hit of constant flow of disappointing GDP numbers. Even though
Germany it is considered to be the leading force in Europe it failed to meet
the market expectations, growing a mere 0.1% in March. Meanwhile France
fell back to recession because of its contraction of 0.2% in March. The EU
registered a 0.2% decline. The Central Bank is still checking out the
possibility of a negative deposit rate and this weighs on the euro. The
economy of the United States it is still growing.
EUR/USD technical analysis - this pair: EUR/USD was traded at the
beginning of the week at the 1.2960 level but it the dropped at a lower level
and it was traded between 1.2840 and 1.2890. The EUR/USD pair failed to
recover, broke lower, eventually closing at 1.2838.
Technical lines from top to bottom:
Before the collapse of the EUR/USD pair in 2012, was traded at the
1.3290 level. The EUR finally pushed through 1.3255, after many failures to
break higher, and this level of 1.3255 provided support during January 2013.
After capping the pair twice in April and May 2012, 1.32 is a clear top.
1.32 is a round number as well. 1.3160 is the level which separated ranges in
May and it represents a critical line. 1.3100 is the level that worked as
temporary resistance in December 2012 and was been followed by the level
of 1.3050, level that provided strong support in May 2013, working as
resistance and defending the round number in more than one occasion.
The weakness of the euro-zone economy was confirmed once again by
the GDP number, in US, data hasnt been all rosy but the economy is
growing.
1. Consumer Confidence: comparing to the consumer sentiment in the
euro-zone valued in March at -23.5 it improved in April, reaching the
level of -22.3. For now its valued is predicted by the analysts at -
23.85.
2. Belgium NBB Business Climate: Belgian business confidence
improved by a mere 0.3 points to -14.7 remaining nearly unchanged in
April. Analysts expect a further rise to -13.4 from 14.3.
3. German IFO Climate: was dragged down by the last recession in the
Euro zone even though it resisted the Euro zone crises for along time.
Its business sentiment declined to 104.4 in April down from 106.7 in
March and it is expecting a rise to 104.6 for now.
4. Current Account: the current account surplus of the Euro zone grew in
February to EUR16.3bilion from EUR13.8 billion the previous month
due to increase trade. A decline to EUR14.2 billion is expected now.
5. EU Economic Summit: this weeks Wednesday its scheduled a
meeting of the European Union leaders in Brussels under Irish
presidency were they will discuss pressing budget and foreign policy
issues of early 2013 and other challenges in the European Council
Priorities up to 2014.

Read more on www.teletrade-dj.ro