EUR/USD Fibonacci level testing, analysis for May 13, 2021
As we can see in the chart, the pair currently tests a very significant 61.8% Fibonacci level at 1.21000. The dollar managed to stop its decline after good economic news, which was immediately reflected in the EUR / USD chart. For now, the pair finds support in moving averages MA20 and EMA20 and 50.0% Fibonacci level. If the dollar continues to strengthen, we can expect the pair to soon drop to 38.2% Fibonacci level at 1.19500 with the support of MA200 and MA50. Otherwise, if we see a pair above 61.8% level, we can expect a continuation towards 1.22000 at a 78.6% level. Looking at the MACD indicator, we see that we are slowly entering the bearish signal, but we cannot be 100 percent sure because the movement is still lateral but tends to switch to the bearish signal.
We can single out the following economic news and political statements that are important for this currency pair: The dollar is more stable after yesterday’s progress, with the major currencies not showing much balance despite the sell-off of European indices. The key point of view is the bond market and yields in the Treasury have also changed slightly, which certainly expects the release of PPI data in the US later in the day. The staggering increase of 0.9% in the April basic consumer price index is the largest since 1981. The index progresses for the second session in a row and is gradually approaching the 91.00 barriers. The dollar attracted attention again after US inflation data for April surprised the rise on Wednesday. In fact, the main consumer prices increased by 0.8% in the months and 4.2% compared to the year before, while the basic prices in the last twelve months increased by 0.9% during the month and by 3.0%. Higher-than-expected results boosted yields and spurred fresh money demand, prompting the index to widen the jump from monthly neighborhood lows of 90.00. Next in the U.S. session, their data will be standard weekly receivables that will assign producer prices for April. In addition, C.Waller of FOMC and St. Louis Fed J. Bullard should speak later during the NS session.
