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The EUR/USD pair could continue to correct lower in the next session, although chances of a steep decline are limited, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“According to the German ZEW Survey, the Economic Sentiment in the EU improved to 46 in May, much better than the -12.1 forecast, while for Germany it also improved to 51 from 28.2.”

“Also weighing on the common currency, the French Finance Minister Bruno Le Maire said that the EU recovery fund proposed by Germany and France, probably will not be available until 2021.”

“The 4-hour chart shows that the pair is firmly evolving above all of its moving averages, with the 20 SMA still below the larger ones. Technical indicators, in the meantime, are losing momentum within overbought levels.”