Published on May 8, 2023

Daily Analysis For EUR/USD 08-05-2023

EUR/USD Analysis

Economic Events and Scenario for EUR/USD

Economic Events: -

GMT	Event	Impact	Currency
00:50	(Japan) BoJ Monetary Policy Meeting Minutes	Medium	JPY
01:00	(France) Victory in Europe Day	None	EUR
01:00	(United Kingdom) Bank Holiday for the coronation of King Charles III	None	GBP
01:30	(Japan) Jibun Bank Services PMI	Medium	JPY
01:30	(Japan) Jibun Bank Composite PMI	Low	JPY
02:30	(Australia) Building Permits MoM	Medium	AUD
02:30	(Australia) Private House Approvals MoM	Low	AUD
02:30	(Australia) Building Permits YoY	Low	AUD
02:30	(Australia) NAB Business Confidence	High	AUD
06:00	(Estonia) Inflation Rate YoY	Low	EUR
06:00	(Estonia) Inflation Rate MoM	Low	EUR
06:00	(Estonia) CPI	Low	EUR
07:00	(Finland) Balance of Trade	Low	EUR
07:00	(Germany) Industrial Production MoM	Medium	EUR
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Greece) Balance of Trade	Low	EUR
10:30	(Germany) 3-Month Bubill Auction	Low	EUR
11:00	(Spain) Consumer Confidence	Medium	EUR
11:00	(Latvia) Industrial Production MoM	Low	EUR
11:00	(Latvia) Industrial Production YoY	Low	EUR
15:00	(El Salvador) Inflation Rate YoY	Low	USD
15:00	(El Salvador) Inflation Rate MoM	Low	USD
15:00	(United States) Wholesale Inventories MoM	Low	USD
16:00	(United States) Consumer Inflation Expectations	Low	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
23:45	(New Zealand) Electronic Retail Card Spending MoM	Low	NZD
23:45	(New Zealand) Electronic Retail Card Spending YoY	Low	NZD

Today's Scenario: - The bulls for EUR/USD are maintaining their control, keeping the pair around 1.1040 and pushing it to an intraday high amidst a sluggish start to the week. The pair has risen 0.15% on the day, heading into Monday's European session. The recent gains in the Euro pair could be attributed to the hawkish comments made by a European Central Bank (ECB) official and the mixed sentiment surrounding the US Dollar, which has led to a broad weakness.

Over the weekend, Dutch Central Bank President and ECB board member Klaas Knot stated that "ECB interest rate hikes are starting to have an effect, but more will be needed to contain inflation." Likewise, ECB Governing Council member and Bank of France head Francois Villeroy de Galhau commented on Friday that there will likely be multiple more hikes.

The Euro pair's upward momentum could also be influenced by a lack of major events in the market, leading to a subdued start to the week. This, combined with the aforementioned factors, has allowed the bulls to maintain their hold on the pair.

Buy Scenario: - On the buying side of EUR/USD pair, a decisive breakthrough above the high of April 26th at 1.1095 will propel the asset towards a fresh 13-month high at 1.1185, followed by the round-level resistance at 1.1200, till we do not advise to buy EUR/USD currency pair.

Sell Scenario: - The EUR/USD pair has experienced a downward trend after failing to surpass the high of April 26th at 1.1095. Currently, the major currency pair has formed a Double Top chart pattern, which will only be confirmed if it drops below the immediate support level of May 2nd at 1.0942. The 20-period Exponential Moving Average (EMA) at 1.1020 is acting as a hindrance for the Euro.

Moreover, the Relative Strength Index (RSI) (14) has shifted into the range of 40.00-60.00. If the RSI falls below this range, it will trigger downward momentum.

Looking ahead, a move below the support level of May 2nd at 1.0942 will pull the asset towards the low of April 12th at 1.0915, followed by the low of April 10th at 1.0837. Till then we do not advise selling EUR/USD.

Support and Resistance Level: -