Daily Analysis For EUR/USD  08-05-2023

Daily Analysis For EUR/USD 08-05-2023

EUR/USD Analysis
Economic Events and Scenario for EUR/USD
Economic Events: -
00:50(Japan) BoJ Monetary Policy Meeting MinutesMediumJPY
01:00(France) Victory in Europe DayNoneEUR
01:00(United Kingdom) Bank Holiday for the coronation of King Charles IIINoneGBP
01:30(Japan) Jibun Bank Services PMIMediumJPY
01:30(Japan) Jibun Bank Composite PMILowJPY
02:30(Australia) Building Permits MoMMediumAUD
02:30(Australia) Private House Approvals MoMLowAUD
02:30(Australia) Building Permits YoYLowAUD
02:30(Australia) NAB Business ConfidenceHighAUD
06:00(Estonia) Inflation Rate YoYLowEUR
06:00(Estonia) Inflation Rate MoMLowEUR
06:00(Estonia) CPILowEUR
07:00(Finland) Balance of TradeLowEUR
07:00(Germany) Industrial Production MoMMediumEUR
09:00(Australia) Myfxbook AUDUSD SentimentMediumAUD
09:00(Switzerland) Myfxbook USDCHF SentimentMediumCHF
09:00(Japan) Myfxbook USDJPY SentimentMediumJPY
09:00(European Union) Myfxbook EURUSD SentimentMediumEUR
09:00(United Kingdom) Myfxbook GBPUSD SentimentMediumGBP
09:00(Canada) Myfxbook USDCAD SentimentMediumCAD
09:00(New Zealand) Myfxbook NZDUSD SentimentMediumNZD
10:00(Greece) Balance of TradeLowEUR
10:30(Germany) 3-Month Bubill AuctionLowEUR
11:00(Spain) Consumer ConfidenceMediumEUR
11:00(Latvia) Industrial Production MoMLowEUR
11:00(Latvia) Industrial Production YoYLowEUR
15:00(El Salvador) Inflation Rate YoYLowUSD
15:00(El Salvador) Inflation Rate MoMLowUSD
15:00(United States) Wholesale Inventories MoMLowUSD
16:00(United States) Consumer Inflation ExpectationsLowUSD
16:30(United States) 3-Month Bill AuctionLowUSD
16:30(United States) 6-Month Bill AuctionLowUSD
23:45(New Zealand) Electronic Retail Card Spending MoMLowNZD
23:45(New Zealand) Electronic Retail Card Spending YoYLowNZD

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: -
S1 1.0975-R1 1.1056
S2 1.0931-R2 1.1093
S3 1.0894-R3 1.1137


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