EUR/USD is on a decline ahead of the Eurozone GDP preliminary data. Analysts expect the economy to have contracted by 1.8% and 0.6% on a YoY and QoQ basis respectively. With this being the third reading for Q1’21, its impact on the Euro will be rather muted.
EUR/USD will also be reacting to the German economic sentiment numbers from the ZEW Institute. Germany is the largest economy in the continent. As such, the country’s economic outlook data is influential to the euro. The forecasted reading of 86.0 for June is higher than May’s 84.4. A better-than-expected reading will be a bullish catalyst for the currency pair.
On the side of the US dollar, the focus will be on JOLTs job openings data. the predicted reading of 8.300 million for April is higher than the prior month’s 8.123 million. If the figure comes in higher than expected, it will help strengthen the greenback against the euro.
EURUSD technical outlook
EUR/USD is down by 0.19% at 1.2166. The currency pair is on a decline after surging to an intraday high of 1.2201 in the previous session. On a four-hour chart, it is trading slightly below the 25 and 50-day exponential moving averages.
I expect EUR/USD to rebound to 1.2200 if the German ZEW economic sentiment data come in better than expected. However, it will probably find resistance at that level ahead of the US JOLTs job openings figure later in the day. On the other hand, the currency pair may drop further to find support at 1.2150. Below that level, the bears may manage to push it lower to 1.2120.