EUR/USD

Traders will eye the European elections, ECB's President Mr. Draghi speech, French consumer spending, German unemployment change, Spanish housing price index and German retail sales. These are the key economic events for the week of May 26-30.

The pair has been in a down trend for 3 weeks, completely trading in a bearish waves making lower lows and lower highs. There is a little hope for bulls at 1.36 levels (50-week SMA) to hold; if the pair breaks below this level, it will fall to 1.3561 levels. This week is very crucial for bulls and bears as well. The weekly key level was placed at 1.36. If this week it closes below it, the bear influence will extend up to 1.3476 and 1.34 levels. If the level of 1.36 holds, then it will pull back to 1.3733 and 1.3775 levels from the current oversold levels.

The weekly key support level is 1.36, resistance is at 1.3733.

In Asia's trading session, the pair again touched the 200-day EMA, pulled back and closed above this. We expect the major fall will take place only after a close below the 200-day EMA. If the pair breaks and sustains below 1.36, it will fall to 1.3585 and 1.3561 in a day or 2. On the up side, if it holds 1.36, then it will pull back to 1.3657, 1.3687 and 1.3733 levels. The daily RSI has been consolidating at oversold levels, which can save the bulls to perform pullback activity.

In the H4 chart, the pair broke the 50-hour SMA at 1.3782, from there till now, it didn't allow the pair to cross above this. Currently, it is located at 1.3688. In Asia's trading session, the pair is trading at 1.3628. On the up side, initial resistance is at 1.3641, above this it can fly up to 1.3655, and the crucial resistance is placed at 1.3688 levels. On the down side, the immediate support level is at 1.3614, below this, 1.36 is strong support. Once it breaks below 1.36, it will fall all the way to 1.3561. The hourly momentum oscillators favors to buy side.