EURUSD InsightWelcome to all our subscribers.
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Key Points
- U.S. President Donald Trump announced on Truth Social that he had a two-hour phone call with Russian President Vladimir Putin, during which both agreed that Russia and Ukraine should immediately begin negotiations for a ceasefire and, more importantly, an end to the war. President Putin echoed the same message to reporters and described the call as overall very productive.
- Following Moody’s downgrade of the U.S. sovereign credit rating from Aaa to Aa1 on the 16th, the “Sell USA” sentiment continues in the market.
- U.S. long-term Treasury yields have returned to levels seen before the Moody’s downgrade, indicating that the market has not reacted strongly to the news.
This Week’s Key Economic Events
+ May 20: Reserve Bank of Australia interest rate decision
+ May 21: U.K. April Consumer Price Index (CPI)
+ May 22: U.S. May Manufacturing PMI, U.S. May Services PMI
+ May 23: Germany Q1 GDP
EURUSD Chart Analysis
As expected, the pair found support around the 1.11000 level and is now forming a price pattern within the upper trend channel. It is expected to break through this area without much resistance, with a potential to reach a high around the 1.14000 level in this rally. However, if this zone is broken, there is also the possibility of further upside toward the previous high near the 1.16000 level. We’ll keep a close eye on price movements around this resistance zone.
