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    Technical analysis of EUR/USD for May 21, 2015

    In April 2015, the index of producer prices for German industrial products fell by 1.5% compared with the corresponding month of the preceding year. In March 2015, the annual rate of change was .7%. The overall index rose by 0.1% in April 2015 ( 0.1% in March and February 2015) compared with the preceding month.

    Given a series of macroeconomic data today is understandably a busy day on the markets. Things should pick up rapidly by today however as we have a number of high-impact data releases to look forward to. The ECB monetary policy meeting accounts are due. The French and German flash manufacturing and services PMI are due. The European flash manufacturing PMI and services PMI are due. Today, we expect the eurozone, Germany and French to deliver negative readings.

    Technical view: The pair fell into the strong support zone. We can call it as make-or-break zone. Ahead of the ECB monetary policy meeting, the pair has been trading in a very tight range between 1.1146 and 1.1060. The strong support zone is found at 1.1050. In the four-hour, the RSI is oversold. Ahead of major events, we expect wild moves at the intraday levels not to work out. Intraday resistance is seen at 1.1185 and support is found at 1.0930. From May 14, we have been advising that the pair is likely to retest the support between 1.1100 and 1.1050. The pair exactly returned from the given resistance zone 1.1480 and 1.1535, fell by 400 pips. Until the pair closes below 1.1290 rounded to 1.1300, use every rise to sell following the trend.

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