The EUR/USD traded higher during today’s Asian trading session and later found resistance at 1.3877 during the London trading session before the bears took control of the pair. This was fueled by Germany’s Federal Statistics Bureau which reported that the country’s consumer price index fell 0.2% in April from March and rose 1.3% on year. Additionally, reports from the euro zone also shows decline in M3 Money Supply and Private Loans which weakened the Euro currency.
Intra-day bias remains on the downside as a fresh cross of 21 and 55EMA’s is seen on the 1hour charts with RSI, Stochastic, and MACD Oscillators and also Volumes are showing a bearish continuation is expected in the pair. More declines to 1.37839 supports are expected a break of this support can bring about more supply to 1.37500 psychological zones.
On Wednesday, Germany is to publish reports on retail sales and unemployment change. Spain is to release preliminary data on first quarter growth. The wider euro zone is to release preliminary data on consumer price inflation.
The U.S economy is to release preliminary data on first quarter GDP, as well as the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to release data on manufacturing activity in the Chicago region.
Later Wednesday, the Federal Reserve is to announce its federal funds rate and publish its statement on monetary policy.