Technical Outlook: The EURUSD was seen initially breaking out from the broad triangle pattern to the downside last month. Price action touched down to the support level at 1.2240 level of support before rebounding strongly. However, the gains were short lived as the currency pair briefly retested the lower trend line of the triangle pattern before giving up the gains. The breakdown below the support level at 1.2240 triggered a sharp sell off but not before price action is signaling a consolidation. In the near term, we expect the EURUSD to retrace the gains back to 1.2240 level where resistance could established. The current rebound also coincides with the support level seen at 1.2062. For the month ahead, the EURUSD is expected to maintain the range of 1.2240 resistance and 1.2063 level of support. Fundamental Outlook: The EURUSD currency pair was seen posting strong declines in April. Most of the declines came during the week of the ECB's monetary policy meeting. The recent slowdown in the economic activity in the region kept speculators in check. Besides the slowdown in the economy, the inflationary pressures were also seen lacking. The preliminary rally that boosted optmism that the Eurozone economy was on a strong path to recovery was met with a reality check. The month of May will validate this view as the first quarter GDP data will be released this month. Various indicators already point to a slowdown in the first quarter of the month which could keep the euro currency gains in check. Previous EURUSD Monthly and Weekly Forex Forecast

EURUSD Monthly Forex Forecast for May 2018