After fixing the price above 1.22, EURUSD will open the way to the level of 1.23

On Monday, May 17, the euro closed almost unchanged. The euro / dollar pair rose 0.03% to 1.2148. An intraday high was recorded at 1.2169 amid a weakening US dollar. Growth was held back by a decline in the EURGBP cross pair.

The British pound gained 0.27% to 1.4126. The growth of quotations was facilitated by the third stage of lifting the restrictions. Hotels, restaurants, tourist facilities have opened in the UK.

Scheduled statistics (GMT + 3)

  • At 12:00, the eurozone will announce changes in GDP and employment for the first quarter, as well as the foreign trade balance for March.
  • At 15:30 the US will announce a change in building permits and the number of new foundations for April.
  • Hearings of the House of Lords Committee on Economic Affairs will take place at 17:00. The speech will be delivered by the Governor of the Bank of England Andrew Bailey, Deputy Governor of the Bank of England for Monetary Policy Ben Broadbent, Deputy Governor of the Bank of England for Markets and Banking Sir David Ramsden, ECB Governor Christine Lagarde.
  • At 18:05, the head of the SNB, Thomas Jordan, will deliver a speech.
  • FOMC member Rafael Bostic will give a speech at 19:30.

Current situation

At the time of this writing, the euro is worth 1.2195. The dollar is losing ground across the entire foreign exchange market. The leaders of growth are the currencies of the Pacific region – the New Zealand dollar (+ 0.68%) and the Australian dollar (+ 0.59%). The euro has renewed its maximum at 1.2197. Buyers were able to break through the horizontal resistance of 1.2180 supported by the EUR / Lb cross.

After the breakdown of the 1.2180 level, the price met a new resistance at 1.2200 (1, the upper channel line). It forms from the tops 1.2150 (04/29/21) and 1.2182 (05/11/21). After the price exits the channel, the road to the 1.23 level will open for buyers.

The key event in the US this week will be the minutes of the FOMC meeting on Wednesday.

Summary: in 71 hours, the euro has risen in price against the dollar by 1.21%, to 1.2197. Buyers broke through the horizontal resistance at 1.2180 amid weak dollar. After fixing the price above 1.22, the road will open for them to the level of 1.23. A surge in volatility is expected at 12:00 Moscow time after the publication of data in the euro area on GDP and employment for the first quarter.

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