Analysis and Forecast EUR / USD - Weekly review (23.05-27.05)

Currency pair after the recent declines and reaching the level of 1.1179 is currently in revision. Demand side should lead to increases in the vicinity of 1,1256-82 (the upper limit of the downward channel, and a minimum of 13 May, which coincides with the 23.6 fibo of 1.1617 drops to the level of 1.1179). For overcoming w / w resistance demand may even reach the vicinity of 1.1345. After the implementation of the motion correction expect declines towards the 1.1216 level and 1.1179. Breaking the support levels open the way towards much lower price levels. The next levels are 1.1144 props and 1,1058-80.

At the moment, expectations of a possible rate hike in June will support the US currency. Therefore, the adjustment may be local in nature or can be witnessed further declines without the said correction. A variant of the base seems to be a further weakening of the euro against the dollar. The threat for the said variant will be worse readings from the US, which negate the increase in June.