Daily Analysis For EUR/USD  22-05-2023

Daily Analysis For EUR/USD 22-05-2023

EUR/USD Analysis
Economic Events and Scenario for EUR/USD
Economic Events: -
00:50(Japan) Machinery Orders YoYMediumJPY
00:50(Japan) Machinery Orders MoMMediumJPY
01:00(Canada) Victoria DayNoneCAD
01:00(Montenegro) Independence DayNoneEUR
02:15(China) Loan Prime Rate 1YMediumCNY
02:15(China) Loan Prime Rate 5YMediumCNY
05:30(Netherlands) Consumer ConfidenceMediumEUR
06:00(Estonia) PPI YoYLowEUR
06:00(Estonia) PPI MoMLowEUR
07:30(Switzerland) Industrial Production YoYMediumCHF
08:00(Slovakia) Current AccountLowEUR
09:00(Greece) Current AccountLowEUR
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(Belgium) Consumer ConfidenceLowEUR
10:00(Euro Area) Construction Output YoYLowEUR
10:45(European Union) EU Bond AuctionLowEUR
11:00(Ireland) Wholesale Prices MoMLowEUR
11:00(Ireland) Wholesale Prices YoYLowEUR
11:00(Luxembourg) Unemployment RateLowEUR
11:30(Portugal) Current AccountLowEUR
13:00(Kosovo) Balance of TradeLowEUR
13:30(United States) Fed Bullard SpeechMediumUSD
14:00(France) 3-Month BTF AuctionLowEUR
14:00(France) 12-Month BTF AuctionLowEUR
14:00(France) 6-Month BTF AuctionLowEUR
15:00(Euro Area) Consumer ConfidenceMediumEUR
15:50(United States) Fed Barkin SpeechMediumUSD
15:50(United States) Fed Bostic SpeechMediumUSD
16:30(United States) 3-Month Bill AuctionLowUSD
16:30(United States) 6-Month Bill AuctionLowUSD
20:00(El Salvador) Balance of TradeLowUSD

Today's Scenario: - The EUR/USD pair has experienced a significant rebound after reaching a crucial support level near 1.0800 during the early Tokyo session. Despite the lack of progress in the US debt-ceiling negotiations over the weekend, the major currency pair has demonstrated resilience around the 1.0800 mark.
In an effort to reach a bipartisan agreement, US President Joe Biden and House of Representatives Joseph McCarthy are scheduled to meet on Monday. The aim is to find common ground, as the previous terms proposed by Republicans were deemed "unacceptable" by the White House. It is worth noting that the White House is not inclined to reduce the entire budget spending by 8%.

Buy Scenario: - EUR/USD buyers remain in control as they maintain the upper hand around the intraday high of approximately 1.0825-30 during the Asian session on Monday. This positive momentum is driven by the break above the 100-day moving average (DMA), marking a recovery from the lowest levels seen in eight weeks. The currency pair is now approaching the upper trendline of a descending channel that has been in place for the past two weeks.
Notably, the rebound of the 14-day relative strength index (RSI) from near oversold levels, coupled with the sustained break above the 100-DMA, provides further encouragement for Euro buyers.
To regain full control, the bulls need to convincingly break above the upper resistance line of the bearish channel, which is close to 1.0860.
However, there are several obstacles ahead for EUR/USD buyers, with resistance levels around 1.0920 and 1.1000 before reaching February's high at 1.1033. It should be noted that surpassing the region of 1.1095-1100 is likely to be challenging for Euro bulls beyond the 1.1033 level, till we do not advise to buy EUR/USD currency pair.

Sell Scenario: - On the other hand, EUR/USD sellers may wait for a clear breach of the 100-DMA support near 1.0800 before entering new positions.
In such a scenario, the pair's downside could find support around the 50% Fibonacci retracement level of the January-April rally, near 1.0790.
However, the critical support to monitor for EUR/USD sellers lies at the convergence of the lower boundary of the aforementioned channel and the 61.8% Fibonacci retracement level, around 1.0720-15. Till then we do not advise selling EUR/USD.

Support and Resistance Level: -
S1 1.0766-R1 1.0835
S2 1.0729-R2 1.0867
S3 1.0697-R3 1.0904


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