EUR/USD continues to have an uneventful week, as the pair trades slightly below the 1.14 line in Wednesday’s European session. In economic news, there are no Eurozone events on the schedule. It’s a light day in the US, with just three indicators, highlighted by Crude Oil Inventories. The markets are expecting a surplus of 0.7 million.
As the largest economy in the Eurozone, German economic data is as a bellwether of economic trends in the Eurozone. German manufacturing numbers have been mixed this week. Industrial Production was dismal, posting a decline of 1.3%, well off the forecast of -0.2%. This marked the fourth decline in the past five readings. Earlier in the week, Industrial Production jumped 1.9%, crushing the estimate of 0.7%. On Friday, Germany will release Preliminary GDP for the first quarter. The markets are predicting a solid gain of 0.6%, considerably higher than the Final GDP in Q4 of 0.3%. Eurozone Flash GDP will also be released on Friday, with the estimate standing at 0.6%. If these GDP numbers match or beat the forecast, the subdued euro could break out and move to higher ground.
EUR/USD Fundamentals
Wednesday (May 11)
- 14:30 US Crude Oil Inventories. Estimate 0.7M
- 17:01 US 10-year Bond Auction
- 18:00 US Federal Budget Balance. Estimate 116.2B
*Key events are in bold
*All release times are GMT
EUR/USD for Wednesday, May 11, 2016
EUR/USD May 11 at 9:30 GMT
Open: 1.1374 Low: 1.1373 High: 1.1397 Close: 1.1391
EUR/USD Technical
| S1 | S2 | S1 | R1 | R2 | R3 |
| 1.1172 | 1.1278 | 1.1378 | 1.1495 | 1.1609 | 1.1711 |
- EUR/USD posted small gains in the Asian session and is flat in the European session
- There is strong resistance at 1.1495
- 1.1378 remains a weak support line and was tested earlier in the Wednesday session. It could see further action during the day
Further levels in both directions:
- Below: 1.1378, 1.1278 and 1.1172
- Above: 1.1495, 1.1609, 1.1711 and 1.1800
- Current range: 1.1378 to 1.1495
OANDA’s Open Positions Ratio
EUR/USD ratio is almost unchanged on Wednesday, consistent with limited activity from EUR/USD. Short positions command a strong majority (59%). This is indicative of strong trader bias towards EUR/USD breaking out and dropping to lower levels.