Technical Outlook: The EURUSD currency pair posted strong declines last week as price fell to a three month low towards 1.2055. The sell off in the EURUSD currency pair came as the ECB maintained its monetary policy unchanged. Despite the central bank brushing aside concerns of the recent weak stretch of economic data, the currency pair fell sharply as the U.S. dollar was seen strengthening. The decline to the current lows however looks oversold with the potential for the currency pair to post a modest short term correction. If the EURUSD manages to breakout above the local highs of 1.2112, then we expect the upside momentum to push the price toward the immediate resistance level at 1.2200. Fundamental Outlook: The economic calendar from the Eurozone is relatively quiet. Most of the data points to second tier information which includes the German retail sales report due on Monday. Flash inflation estimates for both Germany and the Eurozone will be coming out this week. The report will cover the inflation data for the month of April. The preliminary GDP report for the quarter ending March 2018 will also be coming out. The Eurozone's GDP growth is expected to be somewhat modest during the first quarter after posting strong growth last year. Previous EURUSD Weekly Forex Forecast

EURUSD Weekly Forex Forecast - 30th April to 4th May 2018