EUR/USD had another negative week, falling to the lowest levels in 5 months. Will it continue falling? PMI figures and the ECB meeting minutes stand out. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD. German GDP disappointed with a growth rate of only 0.3% q/q in the first quarter while inflation was confirmed at low levels. Italy moved to the forefront with the formation of a government that plans to cut taxes and spend money, enlarging the debt. More radical plans such as writing down â‚¬250 billion of debt were dropped, but markets became jittery and the euro suffered. In the US, 10-year bond yields reached new highs at 3.13%, helping the US Dollar. American data was alright but not outstanding. [do action=”autoupdate” tag=”EURUSDUpdate”/]EUR/USD daily chart with support and resistance lines on it. Click to enlarge: ECB Financial Stability Review: Monday, 8:00. This report about the stability of the financial comes after improvements in the situation of Italian banks but as the country is about to embark on a new political and economic path. It will be interesting to see if the report expresses concern about the recent slowdown or focuses on the stability of the financial institutions. Flash PMI: Wednesday morning: Data for France at 7:00, for Germany at 7:30, and for the whole euro-zone at 8:00. Markit’s final French purchasing managers’ index for the manufacturing sector in April stood at 53.8 points, reflecting modest growth. The preliminary read for May is projected to show a similar figure of 53.6 points. The score for France’s services sector is expected to tick down from 57.4 to 57.3 points. Germany, the largest economy in the continent, is projected to see the Manufacturing PMI dropped from 58.1 to 57.9 points. The Services PMI carries expectations for a small rise from 53 to 53.2 points. The euro-zone Manufacturing PMI is expected to remain unchanged at 56.2 and the Services PMI to stick to 54.7 also in May. Consumer Confidence: Wednesday, 14:00. EuroStat’s survey of around 2,300 consumers stood at 0 points in April, a balance between optimism and pessimism. A rise to 1 point is on the cards now. German GDP: Thursday, 6:00. The final read of Germany’s Q1 2018 GDP is expected to confirm the initial read of 0.3% q/q, half the growth rate in the last quarter of 2017. Revisions are quite uncommon. German GfK Consumer Climate: Thursday, 6:00. This survey of around 2,000 consumers has been stable in recent months, ticking down in April to 10.9 from 10.8 in March, in line with previous reads. A similar score is likely now. ECB Monetary Policy Meeting Accounts: Thursday, 11:30. The European Central Bank did not change its policies in April and refrained from making any announcement. ECB President Mario Draghi described the economic slowdown as a “moderation” and named temporary factors. The meeting minutes from that event will provide a look into the deliberations within the Governing Council. How worried are the members about lower growth rates and falling inflation? The QE program is seen as ending at the end of the year with an interest rate hike sometime in 2019. The minutes will help shape expectations and will move the euro. Belgian NBB Business Climate: Thursday, 13:00. This wide survey from the heart of the European Union showed a positive score of 1 point in April. No significant changes are likely now. German Ifo Business Climate: Friday, 8:00. Ifo is considered Germany’s No. 1 Think-tank. In April, it showed a slide in business confidence, to a score of 102.1 points. a minor drop to 102 is expected. The Current Assessment component is projected to drop from 105.7 to 105.5 points and Expectations are forecast to tick down from 98.7 to 98.5 points. Note that the institution recently changed its formula. * All times are GMT EUR/USD Technical Analysis Euro/dollar initially stalled at the 1.1820 level (mentioned last week). IT then dropped and hit a new low at 1.1750. Technical lines from top to bottom: The 1.2210 level which served as a cushion in April is the next level to watch. 1.2155 was a low point in early March and the last line before 1.2090, the 2017 peak. 1.2060 was the low point in late April and it is the last barrier before the round number of 1.20. The round number of 1.19 is also notable as a pivotal line in the range and it also temporarily held the pair back in late 2017. Further down, the 1.1820 level was a stubborn support line in late 2017. 1.1750 is a low point recorded in mid-May. Further down. 1.1720 is a veteran line that worked in both directions, last seen in November. 1.1695 also served as a cushion around the same time. 1.1610 is already an older line. I am bearish on EUR/USD The new Italian government will likely continue serving as a source of concern while the ECB tends to be dovish. In the US, just reiterating the path of rate hikes by the Fed in the FOMC minutes should be enough as an excuse to gain further ground. Our latest podcast is titled Truce in trade and dollar domination Follow us on Sticher or iTunes Further reading: GBP/USD forecast – Pound/dollar predictions USD/JPY forecast – analysis for dollar/yen AUD/USD forecast – the outlook for the Aussie dollar. USD/CAD forecast – Canadian dollar predictions Forex weekly forecast – Outlook for the major events of the week. Safe trading! Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam EUR/USD ForecastMajors share Read Next GBP/USD Forecast May 21-25 – Digging the bottom, Carney and inflation eyed Yohay Elam 5 years EUR/USD had another negative week, falling to the lowest levels in 5 months. Will it continue falling? PMI figures and the ECB meeting minutes stand out. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD. German GDP disappointed with a growth rate of only 0.3% q/q in the first quarter while inflation was confirmed at low levels. Italy moved to the forefront with the formation of a government that plans to cut taxes and spend money, enlarging the debt. More radical plans such as writing down â‚¬250 billion of debt were dropped,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.