Technical Outlook: The EURUSD was seen posting strong losses last month after the breakout below 1.2063 level of support. With little retracement, the bearish momentum pushed the EURUSD to a five month low. As price approaches the 1.1600 level of support, we expect to see some retracement in store in the near term. Price action could be seen trading within the corridor of 1.1600 and 1.1741 levels in the near term. With the Eurozone fundamentals showing some weakness, we expect the common currency to also reflect this in the trading. In the event that the currency pair rises above 1.1700 then we could expect to see a much needed correction to 1.2063 where resistance is likely to be established. Fundamental Outlook: The euro currency was seen facing one of its worst months in May this year. After rising to a 4-year high in February this year, the common currency gave up the gains, the euro currency was seen falling back to the levels from which it started the year. The month ahead will see the ECB's monetary policy meeting that is due on June 14. This is likely to be the main event where the European Central Bank is likely to give its quarterly forecasts as well as probably adjust its course on monetary policy. With inflation in the eurozone falling back in the first three months of the year, the ECB is likely to remain cautious. However, any concerns on the weakness in inflation could potentially push the markets to brace for continued easing. The ECB's QE program ends in December this year. On the political front, Italy remains a key point of focus with the uncertainty in the government and the mounting debt. Previous EURUSD Monthly and Weekly Forex Forecast

EURUSD Monthly Forex Forecast for June 2018