EUR/USD is close to flat, marginally up after the overnight session as Eurozone consumer confidence approaches at 10:00 AM ET. We will look at different EUR/USD Technicals and a preview of the England CPI
Most of the action (or lack thereof) this morning influencing the pair were speeches from ECB’s Knot and Cipollone.
After yesterday’s NA Session, the Euro closed higher by 0.70%, though off the day’s highs, after Eurozone data revealed the April CPI above expectations. Read more about the Eurozone CPI data release. For other news around the world, the Canadian CPI came at +1.7% y/y, a small surprise (expected 1.6% y/y)
There was also the RBA Interest Rate decision. The Reserve Bank of Australia decided to cut 25 bps which sent the Aussie down initially as the RBA uncovered discussions for a 50 bps, a dovish sign which can show more weakness in the currency.
/*
Requesting advertisement by calling an endpoint assures that
the advertisement is never cached together with the page.
oUOCQ – is a forced measure to prevent JS function from
being overwritten.
*/
function load_advertisement_oUOCQ(){
let adSlot = document.getElementById(‘ad-slot-container-oUOCQ’);
fetch(‘/load-advertisement/26/?is_sidebar=False’)
.then(response => response.text())
.then(html => {
adSlot.outerHTML = html;
})
.catch(error => {
console.error(‘Error fetching the template:’, error);
});
}
load_advertisement_oUOCQ();
EUR/USD Technical Analysis Outlook
Let’s dive into the key levels to watch on different timeframes to trade the EUR/USD.
Daily Timeframe
const imageElement = document.getElementById(‘pinch-to-zoom-img-396’);
if (imageElement) {
panzoom(imageElement, {
maxZoom: 4.0,
minZoom: 0.5,
contain: ‘outside’,
});
}
}, 100);
}
}
}”
x-init=”$watch(‘imgModal’, value => initPanzoom())”
class=”flex “>
EUR/USD Daily Chart, May 20, 2025. Source: TradingView
EUR/USD is constrained between its MA 20, acting as resistance, and its MA 50 acting as support.
Indecisive daily candles the last few days plus a neutral RSI indicate that the market has more chance to stay within the two zones indicated on the chart.
- Resistance Zone is between 1.1270 to 1.1305
- Support Zone is between 1.1070 and 1.1105
4H Timeframe
const imageElement = document.getElementById(‘pinch-to-zoom-img-5214’);
if (imageElement) {
panzoom(imageElement, {
maxZoom: 4.0,
minZoom: 0.5,
contain: ‘outside’,
});
}
}, 100);
}
}
}”
x-init=”$watch(‘imgModal’, value => initPanzoom())”
class=”flex “>
EUR/USD 4h Chart, May 20, 2025. Source: TradingView
The 4H Timeframe confirms an indecision in the price action, with a couple of signs indicate that we may reverse towards the lower support zone indicated right before.
Few rejections of the resistance zones on wick candles indicate that there are lesser odds of a breakout.
Prices may gravitate more towards 1.12 in the waiting for more data
1H Timeframe
const imageElement = document.getElementById(‘pinch-to-zoom-img-8480’);
if (imageElement) {
panzoom(imageElement, {
maxZoom: 4.0,
minZoom: 0.5,
contain: ‘outside’,
});
}
}, 100);
}
}
}”
x-init=”$watch(‘imgModal’, value => initPanzoom())”
class=”flex “>
EUR/USD 1H Chart, May 20, 2025. Source: TradingView
Markets show a slight bigger chance of a retest of the 1.12 psychological level on the 1H chart, with the MA 200 also proving as a magnet. The bearish RSI convergence on the chart confirm a rejection of the resistance zone just above.
There is although no clear sign of a major fall, therefore I would be leaning more towards rangebound action to await for a breakout beyond Support and Resistance Zones.
A bearish RSI Convergence happens when prices fail to make higher highs and the same is conveyed by the RSI.
What markets are awaiting & GBP Update
The rest of the day isn’t filled with much market-moving data – only an array of FED Speakers: Kugler, Musalem, Bostic, Daly, and Hammack. Besides, there is a notable G7 Meeting starting at 8:00 PM ET in Banff, Canada, where Finance Leaders from all Western major nations will prepare for the upcoming June Meeting.
Recent geopolitical and economic developments will be the focus of key discussions about tariffs, AI, and Ukraine. The meeting tomorrow isn’t guaranteed to be market-moving, though the forthcoming meeting in June is something to look out for.
Tomorrow we will see the release of the UK CPI at 2:00 AM ET (7:00 AM UTC) with a high print of 1.1% expected. Trade GBP Pairs such as GBP/USD or GBP/GPY with some caution approaching this key release, as the release will have a great influence on a cut or not for the June 2025 BoE Interest Rate decision. There are further news for the Pound, and the Euro with a EU-UK Trade deal that was concluded earlier this week.
For a more in-depth outlook on the Pound, the following article may be worth a read:
- GBP/USD rallies on Brexit reset deal, dollar weakness
/*
Requesting advertisement by calling an endpoint assures that
the advertisement is never cached together with the page.
giD9E – is a forced measure to prevent JS function from
being overwritten.
*/
function load_advertisement_giD9E(){
let adSlot = document.getElementById(‘ad-slot-container-giD9E’);
fetch(‘/load-advertisement/30/?is_sidebar=False’)
.then(response => response.text())
.then(html => {
adSlot.outerHTML = html;
})
.catch(error => {
console.error(‘Error fetching the template:’, error);
});
}
load_advertisement_giD9E();
Opinions are the authors’; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.
