Key Highlights
- EUR/USD attempted a minor upside correction from 1.0635.
- It traded above a key bearish trend line with resistance near 1.0700 on the 4-hour chart.
- GBP/USD is struggling to recover above the 1.2550 resistance zone.
- The US ISM Services PMI could decline from 51.9 to 51.5 in May 2023.
EUR/USD Technical Analysis
The Euro followed a bearish path below the 1.0750 support against the US Dollar. EUR/USD even traded below 1.0665 before the bulls appeared.
Looking at the 4-hour chart, the pair traded as low as 1.0635, and settled well below the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
Recently, there was a minor upside correction above the 1.0700 level. The pair traded above a key bearish trend line with resistance near 1.0700 on the same chart. However, the bears were active near the 1.0800 zone and the 100 simple moving average (red, 4 hours).
The next major resistance is near 1.0820, above which the pair could rise toward the 1.0850 level. If there is no wave above 1.0800, the pair could dip toward 1.0635.
The next major support is near the 1.0620 level. If there is a downside break below the 1.0620 support, the pair could decline toward the 1.0550 support.
Looking at GBP/USD, the pair attempted an upside correction but the bears are still active below the 1.2550 resistance zone.
Economic Releases
- Germany’s Services PMI for May 2023 – Forecast 57.8, versus 57.8 previous.
- Euro Zone Services PMI for May 2023 – Forecast 55.9, versus 55.9 previous.
- UK Services PMI for May 2023 – Forecast 55.1, versus 55.1 previous.
- US Services PMI for May 2023 – Forecast 55.1, versus 55.1 previous.
- US ISM Services PMI for May 2023 – Forecast 51.5, versus 51.9 previous.
