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EUR/USD Stabilises Around 1.0850, Bull Flag Forming, IFO Due

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As noted elsewhere, in line with already well-established GC consensus ECB rhetoric has done little for the EUR, with EUR/USD little changed to start the week, last 1.0850.

  • Technically, EUR/USD remains below its recent high. The building flag formation looks like a bullish continuation pattern that reinforces the uptrend.
  • A bear channel breakout on May 15 - price cleared the top of a channel drawn from the Dec 28 high - confirmed a stronger reversal.
  • Initial resistance is seen at the May 16 high (1.0895).
  • Conversely, initial support is seen at the 20-day EMA (1.0805).
  • The German IFO survey headlines today’s data calendar. Survey expectations point to a modest uptick in all of the major IFO metrics.
  • ECB-speak from Lane & Holzmann is also due.
  • This week’s broader European focus is set to fall on May’s flash inflation data. The German regional and national readings will cross on Wednesday, with the Eurozone readings due Friday.
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As noted elsewhere, in line with already well-established GC consensus ECB rhetoric has done little for the EUR, with EUR/USD little changed to start the week, last 1.0850.

  • Technically, EUR/USD remains below its recent high. The building flag formation looks like a bullish continuation pattern that reinforces the uptrend.
  • A bear channel breakout on May 15 - price cleared the top of a channel drawn from the Dec 28 high - confirmed a stronger reversal.
  • Initial resistance is seen at the May 16 high (1.0895).
  • Conversely, initial support is seen at the 20-day EMA (1.0805).
  • The German IFO survey headlines today’s data calendar. Survey expectations point to a modest uptick in all of the major IFO metrics.
  • ECB-speak from Lane & Holzmann is also due.
  • This week’s broader European focus is set to fall on May’s flash inflation data. The German regional and national readings will cross on Wednesday, with the Eurozone readings due Friday.