Technical Outlook: The euro currency was unable to maintain its ground against the U.S. dollar was which was seen to be trading stronger last week. Price action was seen breaching past the support level at 1.1848 which indicates that further declines could be expected. To the downside, the EURUSD is close to testing a multi-year support level near 1.1735 level. However, we expect to see some short term rebound in prices as a result. To the upside, the breached support level at 1.1848 is likely to be tested for resistance. Establishing resistance here could signal a decline toward the 1.1735 region eventually. However, watch for the 4-hour Stochastics which is currently printing a higher low against the lower low in price. Fundamental Outlook: Economic data for the week ahead will see the release of preliminary indicators for the month of May. The data is expected to slowly shape expectations on the pace of growth in the Eurozone during the second month of the second quarter. Data includes the Eurozone consumer confidence report. This is expected to show the consumer confidence levels which has weakened in previous months. Later in the week, the flash PMI's covering the manufacturing and services sector will be released. The main highlight of the week will of course be the meeting minutes from the European Central Bank. Previous EURUSD Weekly Forex Forecast

EURUSD Weekly Forex Forecast - 21st to 25th May 2018