EURUSD Consolidates Ahead of Euro Zone Data; Can It Rall to Its 2-Month Highs?

EURUSD is trading in a tight, 25-pip consolidation ahead of today’s roster of economic reports. As of this writing, the currency pair is trading around 1.1084, after opening today’s trading at 1.1076.

At 7:00 am GMT, the German retail sales report for April is expected to print at -12%. Then at 7:45 am GMT, French preliminary GDP for Q1 2020 is eyed at -5.8%. Along with this, the country’s consumer spending is anticipated at -14.5%. Then at 10:00 am GMT, euro zone CPI for May is forecasted at 0.1% while its core reading is seen at 0.8%.

Better-than-expected euro zone data could push EURUSD higher. Alternatively, negative reports could push the currency pair lower.

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EURUSD Outlook

On the 1-hour time frame, it can be seen that EURUSD has been consolidating for the past few trading hours. Because this follows a strong rally, a bullish flag chart pattern has formed. This is widely considered as a bullish continuation indicator. With this, a strong bullish close above the high of May 28 at 1.1092 could mean that EURUSD could still rally to its 2-month highs at 1.1144 where it topped on March 27.

On the other hand, if there is not enough bullish momentum, the currency pair could trade lower. Near-term support is at 1.1029 where the 61.8% Fib level (drawing the Fibonacci retracement tool from the low of May 28 to its intraday swing high) coincides with previous highs.

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