Technical Outlook: The EURUSD continued to post strong declines with the bearish momentum engulfing the price action. We expect this downside to continue as price approaches the key support level at 1.1588. This level marks a multi-year support level which could be tested in the near term. However, we expect to see price rebounding off this support. In the short term, we could expect to see the EURUSD attempting to post a correction to the upside, where a retest of the 1.1848 level is pending. Still, the bias remains to the downside for now, unless EURUSD closes strongly above 1.1848. Fundamental Outlook: Economic data from the Eurozone this week will feature the preliminary inflation reports for the month of May which includes France and Germany. With the week heading into a new trading month, focus will also turn to the monthly manufacturing PMI numbers due to be released on Friday. Following a weak start to the first quarter, investors will be keen to see how the Eurozone economy fared during the month of April which marks the first month of the second quarter. The ongoing uncertainty surrounding the Italian debt concerns also remains a key point to factor into the euro currency for the week ahead. Previous EURUSD Weekly Forex Forecast

EURUSD Weekly Forex Forecast - 28th May to 1st June 2018