The Euro Is Buoyant Ahead Of CPI Data

• 31 May 2018

EUR/USD

The Dollar has come under pressure against the Euro in the last few trading sessions. The EUR/USD pair had reached oversold conditions and has since recovered to break the lower Bollinger band to the upside. The pair is now also testing the 20- period EMA and a break would confirm the reversal. RSI has also broken the 30 support level in support of the bullish move.

Impact event: Eurozone CPI data is due to be released at 12:00 GMT+3 and will impact all Euro pairs.

GOLD

Gold is testing the 1304.49 price level which represents a strong resistance area for the precious metal. At the same time, momentum indicators support the bullish bias with MACD undergoing a momentum reversal. A break of the 1304.49 price level would prove significant and give weight to the uptrend.

Impact event: U.S. Personal Consumption Expenditure data will be released at 15:30 GMT+3 and may impact Gold price.

EUR/AUD

The EUR/AUD pair is testing the 1.543 price level which is a long-term support level, therefore a bullish break would prove significant. RSI is close to breaking the 30 support level to the upside and RSI has flattened in bearish territory. With volume declining, near-term price action will be determined by the conviction of Euro buyers.

EUR/GBP

The EUR/GBP pair is testing the 0.878 price level and the high price SMA, though the bullish move may be short-lived. RSI has flattened in neutral territory and MACD has stalled at the zero line. A break of the price level and moving average would be required to initiate buying positions.